The new document, signed at the Department of Finance yesterday afternoon, sets out a more streamlined and consistent process for how insurance fraud should be reported, recorded and investigated.

Jennifer Carroll MacNeill, the minister of state for financial services, insurance and credit unions, said: “People should not have to absorb insurance fraud costs into their motor, home or business premiums. We are determined to change the culture and practice of insurance fraud in Ireland. Today is an important step in that.

“Government has targeted and delivered insurance reforms over the past three years including the introduction of Personal Injuries Guidelines; enhancement of the Personal Injuries Assessment Board; and rebalancing the ‘duty of care’, which sets a new legal baseline for assessing claims.

“It is great to see An Garda Síochána, the Alliance for Insurance Reform and Insurance Ireland strengthening their cooperation to help stamp out the harmful effects of insurance fraud through the MoU, which ultimately will benefit consumers of insurance products in Ireland.”

She added: “Government is committed to ensuring that the implementation of the Action Plan brings benefits to policy holders across the country.

“It is more important than ever that insurers look at expanding their risk appetite and begin reducing premiums, and to work with their customers to ensure that the benefits of the reforms can be fully realised.”