Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset, the Deputy should note that tackling fraud is one of the six key objectives within the Action Plan of the Report on the Cost of Motor Insurance. This Report recommended the setting up of a fully functioning insurance fraud database for industry to detect patterns of fraud. A dedicated Working Group has been set up in the Department of Justice and Equality to implement this recommendation. A further recommendation which is being actively examined is aimed at exploring the potential for further co-operation between the insurance sector and An Garda Síochána in relation to insurance fraud investigation.

The Report on the Cost of Motor Insurance also recommended the provision of additional information to consumers by insurers on their premium breakdown. This recommendation is being implemented by the Central Bank of Ireland who are undertaking a consultation process to determine what information should be included. Due to their role in implementing this recommendation, my officials contacted the Central Bank on the idea of including the estimated cost of insurance fraud on each individual insurance premium and they indicated that this “would appear to be a complex process. Due to the nature of insurance fraud it would not be feasible to accurately estimate the exact cost of fraud and attribute it to an individual policy. Therefore any attribution of ‘fraud cost’ to an individual policy would be artificial and ultimately not of benefit to the policyholder.”  

My officials also contacted Insurance Ireland in relation to your question and were informed that it has been running advertising campaigns for many years highlighting the cost of fraudulent activity and encouraging the public to reported suspected fraudulent activity through its “Insurance Confidential” service. As part of an ongoing campaign which was launched last year, advertisements have highlighted the view that insurance fraud adds €50 to the average motor insurance premium, with insurance fraud estimated to cost the whole industry €200 million a year.

Insurance Ireland has indicated that 9,000 cases of suspected fraud have been received and investigated through its “Insurance Confidential” website and related lo-call phone number. It also claims that the current high-profile campaign – run across broadcast and online outlets, including social media – has led to increases in the number of cases of fraud reported to “Insurance Confidential”, as well in the number of visitors to the website and an overall increased awareness of the service.

Finally, fraud continues to be examined during the second phase of the Cost of Insurance Working Group, which is focused on employer and public liability.  While the issues under consideration in respect of employer liability insurance and public liability insurance are particularly complex and raise a number of constitutional questions, it is hoped that a final report will be published during the autumn/winter term.  As with the first phase, the aim is for all relevant bodies and stakeholders to work together in order to deliver the objectives of fairer premiums and a more stable and competitive market without unnecessary delay.