Fighting Back: How Allianz Ireland Tackles Insurance Fraud and Protects Your Premiums

October 2025

The Real Cost of Insurance Fraud in Ireland

Insurance fraud is a major issue in the Irish market, with an estimated €200 million lost from insurance claims funds each year. This is not a victimless crime. These massive losses directly impact most honest customers by driving up the overall cost of insurance premiums for everyone. 

At Allianz Ireland, we believe our valued customers shouldn't bear the cost of this dishonesty. That's why our dedicated Fraud teams work closely with our Claims & Underwriting Functions, as well as with An Garda Síochána, to rigorously protect the funds set aside for paying valid claims.

To help our customers understand the problem, it's important to recognise the most frequent types of fraudulent activities we encounter:

Claims fraud involves a policyholder submitting a false claim entirely or significantly exaggerating a genuine loss to receive a higher payout. A particularly worrying trend in recent years has been the increase in staged accidents—premeditated crashes designed purely to generate fraudulent injury claims.

This type of fraud occurs at the point of application for an insurance policy. It involves applicants intentionally providing incorrect information to secure a cheaper premium. Examples include: 

• Failing to disclose previous claims or policy cancellations. 
• Giving false answers about penalty points or driving history. 
• Submitting fake or forged documentation.

‘ Ghost Brokers’ pose a serious risk to motor insurance customers. These individuals pretend to be legitimate insurance intermediaries, selling customers fake insurance policies and documentation at a low price. The victim unknowingly drives around uninsured, facing severe legal consequences.

An Garda Síochána and the Central Bank of Ireland frequently issue warnings about 'Ghost Brokers'. Here are quick tips to ensure your motor insurance is legitimate: 

If in Doubt, check it Out: If you are suspicious of an offer, contact the Central Bank of Ireland or a reputable insurer like Allianz. We maintain records of all legitimate brokers who sell our policies and can confirm their credentials. 

Too Good to be True: Exercise caution if a premium seems drastically lower than market rates. Always double-check the policy and the broker's details before making any payment.

We are continually enhancing our strategies to fight the fraudsters. Allianz maintains a zero-tolerance attitude toward insurance fraud and invests heavily in technology and training to develop sophisticated identification processes.

Our commitment is delivered through: 

• Expert Training: Our experienced Underwriters and Claims handlers are specially trained to spot fraud indicators and identify fake documentation from the outset. 
• Data Verification: We utilize advanced systems to cross-reference new policy details with historical data, checking for previous cancellations, claims history, penalty points, and conviction records. 
• Specialist Investigation: In cases where we identify strong fraud indicators, we quickly appoint private investigators. Over half of all suspicious claims reviewed turn out to be fraudulent in nature. 
• Legal Action: We engage with An Garda Síochána and regulatory bodies, pursuing fraudulent cases to the full extent of the law under the Civil Liability and Courts Act 2004.

The penalties for insurance fraud are severe and include: 

• Policy Cancellation & Refusal: Allianz will immediately cancel the policy and/or refuse to pay the claim, leaving the individual uninsured. 
• Future Difficulty: Committing fraud makes it extremely difficult, if not impossible, to obtain insurance coverage in the future. 
• Criminal Penalties: Insurance fraud is a crime punishable by a maximum fine of up to €100,000 and/or up to 10 years in prison.

Your ongoing support is crucial in helping us keep insurance fair and affordable for honest customers. 

If you are aware of or suspect insurance fraud, please report it confidentially: 

Insurance Confidential Hotline: 1890 333 333 

Website: http://www.insuranceconfidential.ie/