Insurers in talks with Garda on establishing industry-funded fraud unit

The Garda’s economic crime unit and industry body, Insurance Ireland, are believed to have had a number of meetings to discuss the unit, which would be modelled on the UK’s Insurance Fraud Enforcement Department at the City of London Police.

Insurance Ireland confirmed there had been “exploratory talks” but added they are at “a conceptual stage”.

Insurers in the UK have committed €11 million over a period of three years for the unit.

Irish insurers will be looking for about €800,000 to €1m for a department comprising 10 gardai and running costs, according to a source.

The talks come as insurance fraud is on the rise, with organised groups undertaking “crash for cash” accidents – which can lead to multiple payouts.

In a statement, Insurance Ireland said: “This would be along similar lines to the UK’s IFED, albeit on a smaller scale. The proposal is at a conceptual stage at present and is the subject of ongoing discussions. Such an Investigation Group would need to be accompanied by solutions to the problems around the sharing of information between insurers and around securing prosecutions and convictions.”

Organised fraud has been blamed for a rise in premiums, which have shot up by 66 per cent since 2011 and 25 per cent in the year to September. Insurers have said it costs about €200m a year, adding €50 to individual policies.

But an Oireachtas committee report from last week said insurers lack transparency, making it impossible to find the central cause of the increase in premiums.