It’s been 10 years since Irish lobby group Alliance for Insurance Reform stopped calling for industry changes after a shake-up that saw the establishment of the Injuries Board. Now a revival is imminent amid rising premiums and rampant fraud.
“It is time to bring back the Alliance for Insurance Reform,” stated Pat McDonagh – who headed the group from 2002 – as quoted by the Irish Independent.
With the persistent surge in cover costs, another nagging issue being faced by the Irish market is alleged cartel activity. Almost two months ago we told you about motor insurers and brokers being raided by the Competition and Consumer Protection Commission and the European Competition Directorate as part of a longstanding probe.
McDonagh, founder of food chain Supermac’s, asked: “Why has it taken the EU authorities to come in and investigate insurance companies and brokers? That raises a very big question.”
He also cited bogus accident claims as among the reasons for the need to revive the lobby group. Meetings are likely to be set soon, according to the report.
Allianz Ireland recently said more than half of the insurance claims it considers suspicious turn out to be fraudulent. It also said an estimated €200 million of insurance claims funds is lost each year in Ireland due to fraud.
A new head for the revived Alliance for Insurance Reform will be named in due course.
Related stories:
Motor insurers, brokers raided as authorities seek cartel evidence
Allianz: Over half of suspicious claims in Ireland are fraudulent
