Dáil Éireann Debate, Tuesday - 20 June 2023
262. Deputy Damien English asked the Minister for Finance the impact that fraudulent claims are having on insurance premiums in the private motor, home and public liability insurance for businesses in Ireland; and if he will make a statement on the matter. [29823/23]
Amharc ar fhreagraThis Government recognises that insurance fraud is one of several factors that negatively impact the cost of insurance. Of course, it is important to remember that the vast majority of insurance claims are genuine and far outnumber the amount of fraudulent cases.
As part of the wide-ranging Action Plan for Insurance Reform, the Government has included a number of targeted measures to help reduce fraud.
The Minister for Justice, has completed the establishment of a dedicated Insurance Fraud Coordination Office (IFCO) within the Garda National Economic Crime Bureau (GNECB). The Office was established with the aim of improving cooperation and coordination with the insurance industry, bringing consistency to the handling and investigation of insurance fraud referrals from industry, and improving subsequent referrals to the Director of Public Prosecutions.
I understand that the GNECB is providing training and support to all Garda Divisions in how to investigate fraud. It has also put in place reporting mechanisms between An Garda Síochána and the insurance industry, and has drafted Memorandums of Understanding in association with Insurance Ireland and the Alliance for Insurance Reform.
Separately, the Criminal Justice (Perjury and Related Offences) Act 2021 was signed into law in June 2021, representing another tool to tackle fraud. This places perjury on a criminal footing for the first time, thereby making the offence easier to prosecute. The Act increases the range of options for investigation, prosecution and penalties on conviction which can be considered for those making false and misleading claims.
In summary, the Action Plan for Insurance Reform has delivered a suite of measures aimed at addressing the factors that influence insurance costs, including fraud.
Alongside actions to reduce fraud, reforms have been implemented in several other key areas, ranging from the Personal Injuries Guidelines, which set new levels for personal injury awards, to legislation to enhance the Personal Injuries Assessment Board.
It is important to note that the impact of reforms takes time to transmit to price levels for a variety of reasons. These can include: uncertainty arising from ongoing legal challenges; the inherent complexity of the insurance sector’s operating environment; or even dynamic, external developments which can determine price or supply in a small market such as Ireland.
It is therefore vital that reforms are given sufficient time to take effect, and are supported by all stakeholders to do so. In this way, I believe that the cumulative impact of the Action Plan will lead to an improved insurance environment for all policyholders, including motorists, homeowners and businesses.
