Pearse Doherty TD cuts through insurance industry spin on reason for increases and high premiums

» Callum Smyth

"The insurance industry is completely exaggerating the issue of fraudulent claims in a way to try and justify the type of premiums they are charging, and the increases we are seeing in certain sectors." - Pearse Doherty TD

At this week's Finance Committee, Sinn Féin's Pearse Doherty single handedly cut through the spin from insurance industry CEO's and their claims that fraud is the main factor driving up insurance premiums.

Through some vigorous cross examination, Teachta Doherty questioned the CEO of AXA Phillip Bradley, CEO of Allianz Sean McGrath as well as FBD Ireland's Jackie McMahon and Fiona Muldoon.

The insurance industry big wigs were left stuttering and lost for words when they were faced with questions around how many of the claims they suspected to be fraudulent, they actually reported to the Gardaí. 

In the case of Allianz, Teachta Doherty found that just 1% of all claims made to the insurance company were reported as fraudulent, despite the CEO previously stating that 20% of all claims made were suspected to be fraud.

Speaking from Committee, TD for Donegal Pearse Doherty said:

"I'm not suggesting there is no issue with fraudulent claims. What I'm suggesting is that the insurance industry is completely exaggerating the issue of fraudulent claims in a way to try and justify the type of premiums they are charging, and the increases we are seeing in certain sectors.

"It is not for the insurance industry to prove whether claims are fraudulent. It is for the industry to report a suspected crime to the Gardaí. 

"We have listened for quite a while in relation to this issue and I know there are issues in terms of fraudulent and exaggerated claims, but not at the scale that the industry is suggesting - and the last 10 minutes have just proven that."

In case you missed it, watch Pearse Doherty's contribution to the Finance Committee from Thursday afternoon on Twitter here.