Allianz Ireland has said that 45% of all claimants' cases that the insurance company contests in court are potentially fraudulent.

The company estimates that each case it has won has resulted in an average saving of €20,000 per claimant.

Allianz Ireland said it continues to take a very strong stance with potentially fraudsters who either have over exaggerated or made spurious claims and it challenged over 1,500 claimants in the courts last year. 

It said it currently has 500 cases awaiting trial, which it deemed to be suspicious and is currently pursuing in the courts. 

"Allianz Ireland has a zero-tolerance approach to insurance fraud and this is backed up by recent further investment in people and technology," the company stated.

According to Allianz, insurance fraud has grown with one in ten claims in Ireland thought to be spurious or exaggerated. 

Insurance Ireland has suggested that each motor policy is increased by €50 to cover the cost of fraud. 

With an estimated 1.8 million policies written in Ireland a year, that places the annual cost of fraud to the industry at an estimated €90m.

Every year, the Irish courts system deals with high levels of personal injury litigation with 22,417 personal injury cases filed in 2017. 

The total amounts awarded by the courts in 2017 reached €205,812,864.

Sean McGrath, CEO of Allianz Ireland, said that the cost of investigating and mounting a case to challenge fraudulent claims is not cheap but, the long-term benefits outweigh the initial cost.

"It sends a clear message that Allianz is here to protect our customers and will challenge anyone who sets out to scam or defraud either Allianz or our customers," he added.