Allianz Trade Launches Fraud Insurance Amid Rising Risks

Allianz Trade, the trade credit insurance provider, has introduced its standalone Business Fraud Insurance product in Ireland, targeting companies with more than 20 employees who face increasing threats from both internal and external fraud.

The new offering is designed to combat the growing threat of fraudulent activities targeting businesses.

Vikshay Vijai, Head of Business Fraud in the UK & Ireland at Allianz Trade, will collaborate with Dean O'Brien, Country Manager for Ireland, and Michael Murtagh, Sales Manager for Dublin, to expand the company's fraud insurance portfolio in Ireland. The firm has confirmed plans to increase its specialist fraud team in Dublin.

Irish businesses face mounting fraud threats

The launch comes at a time when fraud is becoming increasingly prevalent in Ireland. Data shows that 55% of businesses across Ireland and the UK have experienced fraud incidents within the past 24 months.

The scale of fraud is growing in both value and frequency. Fraudulent payments in Ireland reached €126m (US$136m) in 2023, representing a 26% increase from the previous year. The number of fraud, deception and related offences has risen by 43% compared to 2020 levels.

Risk assessment gap identified

Despite the rising threat landscape, 62% of Irish firms have not conducted a comprehensive fraud risk assessment in the past year. Allianz Trade's product aims to address this gap by including a thorough evaluation of business fraud risks and customised mitigation advice, in addition to the insurance policy itself.

"Fraud risks are accelerating in Ireland, not least because of the rise of remote working.

"We're seeing a growing number of risks in supply chain fraud, buyer fraud and procurement fraud. The risks are particularly elevated in industries where there's a high turnover of staff on flexible or zero-hour contracts, like food & beverage and wholesale/retail trade, but no industry is immune," says Vikshay.

The comprehensive policy covers losses caused by employees, including temporary staff and external professionals such as lawyers and auditors, through various means including theft, fraud, embezzlement and trade secret infringement.

It also protects against social engineering—where fraudsters assume false identities to trick employees into transferring funds or revealing sensitive information.

Third-party fraud protection extends to robbery, burglary, fake buyers or suppliers, payment diversion and forged invoices. Additionally, the policy covers business continuity costs for up to six months following a loss event.

The definition of 'employee' in the policy encompasses full-time, part-time, temporary and contractual workers. Social engineering protection is included as standard, while the policy features unlimited retroactive cover for losses that occurred before the policy inception date.

Customers will have access to Allianz Trade's specialist fraud team, who can assess claims and provide post-incident support.

Dean O'Brien, Country Manager for Ireland at Allianz Trade, explains the rationale behind the launch: "Allianz Trade has more than 60 years' experience managing fraud risks across Europe.

"We're combining this expertise with over two decades' experience working with Irish businesses and a clear understanding of the cover they need to help them address the evolving fraud risks they face."

Explore the latest edition of FinTech Magazine and be part of the conversation at our global conference series, FinTech LIVE. 

Discover all our upcoming events and secure your tickets today.

FinTech Magazine is a BizClik brand