Excerpts from an article that appeared on Allianz Insurance's blog by Robert McEvoy
The first major reason has been well publicised. Insurance premiums have been subject to many years of under-pricing in the Republic of Ireland and this is the reason why many motor insurers in Ireland have reported losses on their motor insurance businesses in 2014.
Ireland’s return to economic growth and a greater number of road users has also increased the number of claims in the motor insurance market over the last 18 months and this has further compounded any loss-making situations some insurers have found themselves in.
Another factor relates to the Irish insurance industry’s preparation for the introduction of the EU led “Solvency II” directive in 2016; which means in broad terms that insurance companies must hold greater amounts of capital to...
Claims from staged road ‘accidents’ are costing law-abiding motorists up to €75 extra on their premiums a year, according to a leading insurance company.
Insurers Aviva said it is a “growing problem” and it is concerned at “organised rings” that were planning crashes and “selling seats” in the vehicles to other people as part of the fraud.
Aviva fraud manager Robert Smyth, a retired senior detective, told the Irish Examiner that criminals were selling seats for €150 to €200 to people, who could make around €5,000 in a compensation claim.
The insurance industry has previously said fraud was costing companies an estimated €200m annually, which “ends up being paid by honest policyholders”.
Mr Smyth said the industry estimated that claims from staged accidents were resulting in between €50 and €75 extra being...
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