Aviva Insurance Ireland, the third-largest insurer in the market, said it has noted an increase in contested claims being pulled before court hearings, as courts take a harder line on insurance fraudsters.
“We are pleased to see the trend whereby individuals perpetuating insurance fraud continue to be prosecuted in the courts, with some of those convicted having received significant jail sentences,” said Brian O’Connor, chief claims officer at the insurer, as it reported on claims payouts for 2024.
“We welcome this development having spent many years investing in resources to fight fraud and, while we have seen an increase in the number of people who withdraw their claim before a court hearing due to our refusal to settle out of court, it is only when the justice system is seen to consistently punish convicted fraudsters that a true deterrent will be in place.”
The Garda National Economic Crime Bureau (GNECB) established a dedicated office in 2021 to take in all reports of alleged insurance fraud for initial consideration.
Aviva Insurance Ireland saw a 20 per cent annual increase in claimants withdrawing their cases just before a court hearing in the year to last May, according to a company spokesman.
Some 41 claim pulled claims over the period that had had a combined reserve value of €540,000. The trend has continued since then, the spokeswoman added.
Of 49 suspected fraudulent claims that did end up in court for the period, judges found in favour of Aviva Insurance Ireland in 28 cases and against in 21, the spokeswoman said.
Aviva Insurance Ireland paid out €273 million in claims to its general insurance customers and third-party claimants in 2024, little change from the previous year.
However, while property payments declined by 9 per cent amid relatively benign weather during the period, the value of payments made on motor damage increased by 12.7 per cent, according to the company.
“Inflation in the cost and availability of vehicle parts, allied to a shortage of skilled labour means that the cost of motor damage repair continues to run well ahead of general inflation,” according to the company.
The total amount spent on injury claims increased by 10 per cent on 2023. “The failure of more than 50 per cent of claimants to positively engage with the Injuries Resolution Board continues to drive claims through the courts system, with resultant delays,” it said.
“This means that a significant number of claims which are subject to the reduced values introduced by the government in 2021, have yet to be resolved and the payments made in 2024 still include cases subject to the higher value awards. These delays also generate higher legal costs.”
Aviva Insurance Ireland reiterated criticism of the judicial council’s proposal in December for an overall increase of 16.7 per cent in damages awarded for personal injuries to reflect general inflation in recent years.
