Insurance companies “need to challenge suspect claims” to avoid fraudulent claims and excessive compensation amounts. 

That’s according to Alliance for Insurance Reform CEO Brian Hanley following a new survey revealing beliefs about insurance fraud. 

The Injuries Resolution Board poll found one in three Irish adults believe the personal injuries claims process is unfair because of excessive compensation. 

Mr Hanley said the results are not surprising given the increase in insurance premiums recently. 

“The value of claims has reduced since the introduction of the personal injury guidelines in 2021,” he told Newstalk Breakfast. 

“But I think what [the survey] is really getting out is the number of fraudulent and exaggerated claims. 

“We really can't be strong enough in how we address those issues.” 

He said insurance companies should follow the Gardaí example of an insurance fraud office. 

“Insurance companies need to challenge more suspect claims in court,” he said. 

“To settle those claims is short-term thinking – that denies them and us the benefits that we derive from more robust examination of short-term claims. 

“Companies have considerable resources and I think it's vital that a meaningful portion of those would go towards investigating and challenging suspect claims.” 

Addressing insurance claims

Mr Hanley said it is “too easy” for insurance companies to simply settle suspect claims and then “pass on the cost to policyholders”. 

“64% of the respondents [from the survey] said they had a premium increase last year,” he said.  

Some 24% saw their premium stay the same, while 12% saw it decrease last year. 

“We can’t continue to just pass on increases. 

“This is all the more difficult when a Central Bank report showed insurance [companies] profits increased by 65% in 12 months. 

“It's really outrageous at this stage to see that level of profit be made while increasing premiums.” 

The survey also found four in 10 believe claims are made because they’re “easy to make”. 

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