Insurance companies in Ireland have been accused of “completely exaggerating” the numbers of fraudulent claims in order to push up the premiums they charge Irish consumers.

Sitting before the Oireachtas finance committee last week, the bosses of FBD Insurance, Axa Ireland and Allianz Ireland claimed that up to 20% of all the insurance claims they receive in a year are potentially fraudulent in nature.

However, Sinn Féin’s finance spokesman Pearse Doherty challenged this claim and said the insurance industry in Ireland was “completely exaggerating” the issue of fraudulent claims in a bid to justify the level of premiums being charged to consumers.

When queried by Doherty, FBD’s chief claims officer Jackie McMahon said the company receives 60,000 to 65,000 insurance claims every year.

FBD's chief claims officer Jackie McMahon speaking at the Oireachtas finance committee.

If the 20% figure was correct, at least 10,000 of these claims would have to be fraudulent or suspicious in nature, said Doherty.

Allianz Ireland said it had reported just 48 cases of suspected fraud to gardaí in the last year even though the insurer processes 5,000 claims every year

However, Doherty said less than 19 cases of potential insurance fraud had been reported to the gardaí by the entire insurance industry in the six months from October to March.

When asked how many potentially fraudulent claims it reported to the gardaí, FBD chief executive Fiona Muldoon said she did not have the figures.

Allianz Ireland said it had reported just 48 cases of suspected fraud to gardaí in the last year even though the insurer processes 5,000 claims every year.

Similarly, Axa Ireland said it processed 5,000 claims per year but had only reported 55 cases to the gardaí since 2013, which is less than 10 per annum.

The Oireachtas finance committee is probing Ireland’s insurance industry and the high cost of insurance premiums over recent years

All three insurance companies said they did not have enough evidence or proof to refer all suspected fraudulent claims to gardaí.

However, Doherty said it was not the job of the insurers to prove fraud and that all suspected cases should be referred to the gardaí.

The Oireachtas finance committee is probing Ireland’s insurance industry and the high cost of insurance premiums over recent years.

The committee is also examining the high level of injury awards in this country and its impact on premiums.