Irish Consumers’ Differing Views on Overstating Insurance Claims Revealed

Research from Allianz conducted by Red C Research reveals:

Adding small extra items to exaggerate a claim seen as least fraudulent by consumers

  • One quarter of consumers would hesitate to report someone making a fraudulent claim
  • 8% likely to exaggerate a car insurance claim

Consumers in Ireland have a fear of being identified if they report fraudulent insurance claims, and yet large portions of society have differing views as to what constitutes insurance fraud. These are among the findings of new research conducted by Red C Research for one of Ireland’s leading insurers, Allianz.

These findings follow on from earlier research that revealed that nearly three quarters of Irish adults did not know how to report insurance fraud. This was further compounded by a fear of being identified which saw 1 in 3 people say they would not report a case of fraud insurance.

When asked what the least fraudulent activity is relating to insurance claims, adding little extras that were not stolen or damaged was seen as the least fraudulent.

The most startling findings were that 8% of respondents admitted that they would be likely to claim from their car insurance for an amount greater than the actual damage done. Exaggeration of insurance claims, apart from the obvious impact on insurance premiums, is illegal and can lead to prosecutions.

The research was commissioned by Allianz and conducted by Red C Research amongst 1,002 adults nationwide. The research found significant differences in attitude towards what constitutes insurance fraud.

Insurance Fraud’s Ranking Amongst Irish Consumers

When asked to rank what fraudulent activities were the worst, 41% said that claiming for a false injury in an insurance claim was the most fraudulent. 32% of those surveyed reported that setting up policies under someone else’s name without their knowledge was the next most dishonest and fraudulent.

When probed further, only 8% saw exaggerating an injury as a fraudulent act, with just 5% reporting that they would consider over stating the value of a claim as potential fraud. Only 1% of Irish adults felt adding an extra item that was not damaged or stolen would constitute insurance fraud. The research found that those who regard exaggerating an injury or value of a claim as low in their ranking of fraud were more likely to have been tempted to make a false claim on their car insurance policy.

“Reporting of any crime can take courage. While insurance fraud is a crime it is seen, by some, as a victimless crime. However, more needs to be done to educate the public as to the consequences of committing insurance fraud and the effects it is having on Irish business and consumers nationwide,” said Sean McGrath, CEO of Allianz plc in Ireland. “We need to help change the attitudes towards making any false insurance claim as a victimless crime. These little temptations cost the public in the long run. Allianz will continue to proactively tackle insurance fraud; In 2019, we are preparing to fight over 600 suspicious claimants. Allianz have saved more than €20,000 per claimant in 2018 by fighting suspicious claims in court, which is in our customers’ best interest.”

Learn More about Allianz’s research on fraud.

RED C Research interviewed a random nationally representative sample of 1,002 adults aged 18+ in February 2019 in relation to attitudes and opinions towards home and car insurance fraud. Interviews were conducted across the country and the results weighted to the known profile of all adults.


How to Report Suspected Fraud

To report suspected insurance fraud, contact Insurance Confidential on either 1890 333 333 or visit www.insuranceconfidential.ie and follow the instructions. Insurance Confidential was established in 2003 by Insurance Ireland, the industry’s representative body, to help combat the rising levels of Insurance Fraud in Ireland. Since its launch, it has received and investigated over 9,000 new cases of suspected fraud.


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