Allianz Ireland has said that over half of the insurance claims it receives and considers suspicious turn out to be fraudulent.
Last week, the Central Bank of Ireland revealed that insurance premiums increased by up to 19% between 2014 and 2015. The Bank’s report also found that the cost of claims on comprehensive policies surged by 45% between 2010 and 2015.
Sean McGrath, Allianz Ireland CEO, told Irish Times that although the number of claimants with criminal intent were in the minority, the cases where claim values were suspiciously high more often than not related to claimants with criminal intent. McGrath, however, said that “fraud is a difficult thing to prove.”
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McGrath described the system of compensation in Ireland as “somewhat volatile,” referring to the mounting costs of insurance in recent years. He called on politicians to help implement consistency so that the insurance industry can be as efficient as possible.
The CEO also criticised the difference in awards for whiplash in Ireland and in the UK. McGrath argued that insurance costs will continue to rise if Irish insurance companies have to pay four or even five times more than their UK counterparts.
Allianz Ireland revealed that in 2015, it made a loss of €32 million on its motor insurance business. The company’s gross premiums written in Ireland were worth €208 million, while claims incurred cost it €194 million. Operating expenses considered, Allianz’s total loss on motor insurance was €40 million, before factoring in returns on investments.
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