Adults Don’t Know How to Report Insurance Fraud

1 min read     April 25th, 2019
 

Research from Allianz Ireland conducted by Red C Research reveals:
 

• 46% have heard of or know someone who has committed car or home insurance fraud
• 56% of older adults would not hesitate in reporting insurance fraud
• 1 in 3 hesitant to report suspected fraud due to fear of being identified
• Those who personally know someone who has made a fraudulent claim are more likely to make an exaggerated car insurance claim

New research from Allianz into Irish consumers’ awareness of fraud in car or home insurance claims shows that nearly three quarters (68%) don’t know how to report a case of suspected insurance fraud. This despite over half (57%) of Irish adults saying they know what will happen to someone attempting to commit insurance fraud.

The research, commissioned by Allianz and conducted by Red C Research amongst 1,002 adults nationwide, found over half (54%) of Irish adults say they have no experience with insurance fraud, however 46% have heard of or know someone who has committed home or car insurance fraud.

Temptation

Although more than half (52%) of those surveyed would be highly unlikely to make a false insurance claim, nearly one in ten (8%) said they would be likely to. This was especially true amongst those aged between 18-34 years old, those who work full time, and those who personally know someone who has made a fraudulent claim. 52% of adults would not be tempted. This is especially true of those aged 55+ (60%), home makers (56%), and retired adults (64%).

Reporting Insurance Fraud

When asked about reporting fraud, 45% of Irish adults said they would not hesitate in reporting someone who has made a fraudulent claim on their insurance policy. This is especially true of older adults; 56% aged 60+ claimed they would not hesitate reporting someone who has made a fraudulent claim on an insurance policy. However, a fear of being identified saw 1 in 3 people say they would not report a case of fraud insurance. This was especially prevalent amongst women, those aged between 35-54, those who were working part time, unemployed, or home makers, as well as those living in the Connaught and Ulster regions. Interestingly, those who have some knowledge about insurance fraud are less likely to share these concerns surrounding identification when reporting suspected fraud.

“These findings are concerning and point to the need to further educate the broader public of the consequences of attempted insurance fraud,” said Sean McGrath, CEO of Allianz plc. “There has been progress in changing the perception of insurance fraud not being a victimless crime, but more needs to be done as this fraud costs the public in the long run. Allianz will continue to proactively tackle insurance fraud, as in 2018 we suspected 45% of claims we contested were fraudulent. Each case that Allianz plc won in 2018 delivered an average saving of €20,000 per claimant, which is in our customers’ best interest.”

RED C interviewed a random nationally representative sample of 1,002 adults aged 18+ online between 7th to 12th of 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, the easiest way is to go to 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.

This guidance is for general information purposes only. Allianz accepts no responsibility or liability for any losses that may arise from any reliance upon the information contained in this guidance.

Information correct as of date of publishing. This blog will not be updated or edited so the information may become outdated.