UP TO 20 per cent of insurance claims could be fraudulent, according to the Irish Broker’s Association.
Although official numbers say that insurance claim fraud occurs in approximately seven per cent of cases, brokers suggest that in reality this figure could potentially be closer to 20 per cent it said.
“In the UK there are databases that insurers can access when a proposal is submitted that allows them to see whether claims have been submitted in the past”, Brian McNelis, Director of General Services at the Irish Brokers Association told TheJournal.ie.
“In Ireland, this only occurs when claims occur which leaves brokers to carry the can when the claim arises” he said. The Brokers Association is calling for a question to be added to insurance forms that will allows insurers to cross-check information with other companies and see whether there are any outstanding claims.
“Dishonesty when it comes to claims is affecting all aspects of the industry be it motor, or home the cost of which is ultimately paid for by compliant honest policyholders” said Brian McNelis, Director of General Services at the Irish Brokers Association.
As a result, fraudsters were pushing up the cost of insurance premiums for everyone else, he said.
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