Press release
Minister of State Sean Fleming addresses Insurance Ireland’s Fraud Conference
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Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Sean Fleming TD today (17th November) opened Insurance Ireland’s annual virtual Fraud Conference.
The Minister highlighted the fact that fraud is not a victimless crime and has a cumulative impact on all insurance policy holders. According to the Motor Insurers’ Bureau of Ireland (MIBI) the cost of the claims made by uninsured drivers adds around €30 to every premium sold to Irish customers.
Minister of State at the Department of Finance, Sean Fleming TD said:
“While MIBI is responsible for claims resulting from both uninsured and unidentified drivers, accidents involving uninsured vehicles make up the vast majority, accounting for over 70% of the claims it receives annually. From an industry perspective, MIBI expenses constitute 4% of gross underwriting costs per annum. These numbers paint a clear picture, and suggest that reducing levels of uninsured driving can act as another lever to lower costs for both policyholders and insurers.”
The Minister highlighted the Government’s progress in the Action Plan for Insurance Reform. The Criminal Justice (Perjury and Related Offences) Act 2021, which made perjury a criminal offence, was enacted this year.
Minister of State at the Department of Finance, Sean Fleming TD said:
“This provides a clear definition of perjury and should make it easier to prosecute this offence. A greater benefit still, in my view, is that it should serve as a strong deterrent to making false or exaggerated claims in the first place. This is especially true given the clear penalties it provides for certain offences.”
Another key development has been the establishment of a new Insurance Fraud Coordination Office within An Garda Síochána. The Office will ensure that all fraud cases received by the Gardaí are reviewed and recorded on the PULSE system.
Minister of State at the Department of Finance, Sean Fleming TD said:
“I met with the Garda Commissioner and other members of the force earlier this month to discuss a number of issues, including the new Fraud Office. I understand that within a month of it being set up, there are already a number cases under investigation. Of the many actions being pursued in this arena, I believe that the creation of a dedicated Insurance Fraud Office most clearly highlights the seriousness with which Government takes the issue of fraud, and our clear intent to target it.”
“In order to be successful, it requires collaboration with and between the insurance industry and An Garda Síochána. I know that great strides have already been made in recent years to enhance cooperation and coordination between the Gardaí and industry, such as regular meetings between Insurance Ireland and the Garda National Economic Crime Bureau.”
ENDS