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Rising motor insurance premiums and attitudes to insurance fraud among drivers in Ireland

Kavanagh, Niall (2018) Rising motor insurance premiums and attitudes to insurance fraud among drivers in Ireland. Masters thesis, Dublin, National College of Ireland.

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Globally, it is estimated that 10% of all insurance claims made by consumers are fraudulent, while just one fifth of these fraudulent claims are detected by the insurer. In Ireland, it is estimated that insurance fraud costs over €200m each year. Insurance fraud is blamed for adding €50 to every insurance premium in Ireland annually. The purpose of this dissertation is to investigate the relationship between motor insurance experience in Ireland and perception of insurance fraud. This study was conducted during a period of widely reported concerns about the increasing cost of motor insurance in Ireland and an EU investigation into suspected cartel-like activity by Irish insurers. This paper explores perception on the cost of motor insurance and if this impacts on attitudes to motor insurance fraud, specifically in relation to applying for insurance cover or making a claim.

Data was collected from both primary and secondary research. A broad set of journal articles, books and web resources were analysed to gain a deeper understanding of previous research work on perceptions of insurance fraud. This process built a base of knowledge in the area prior to undertaking primary research and also helped identify gaps in the work completed to date.

A quantitative research methodology was performed using an online survey and anonymised data from 107 respondents was analysed to compare insurance experience and attitudes to insurance fraud.

Respondents who had experienced an increase in their motor premiums were not found to have a lower tolerance to insurance fraud than respondents who had seen a decrease in their motor premiums. Similarly, respondents who believed the amount they paid for motor insurance was unfair did not differ significantly in their perception of insurance fraud than those respondents who felt the cost of motor insurance was fair.

Analysis of the survey data highlighted that respondents who made a third-party claim against another individuals motor policy were found to have a significantly lower tolerance to fraud than individuals who had made a claim against their own policy or those who had not made a claim. This finding may be of interest to insurers as previous research has identified that tolerance to insurance fraud is positively correlated with the frequency of claims.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HG Finance > Insurance
H Social Sciences > HD Industries. Land use. Labor > Specific Industries > Motor Industry
Divisions: School of Business > Master of Business Administration
Depositing User: Caoimhe Ní Mhaicín
Date Deposited: 30 Oct 2018 09:26
Last Modified: 30 Oct 2018 09:26

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