Nearly 75% of Ontarians with auto insurance believe that auto insurance fraud is prevalent in the province, a new poll commissioned by the Financial Services Regulatory Authority of Ontario (FSRA) has found.
The FSRA revealed that more than 40% of the poll’s respondents indicated that they are worried that they could be a victim of auto insurance fraud. Nearly six in 10 (56%) respondents also said that they do not know enough to protect themselves from auto insurance fraud. It was also noted that only one if five respondents with auto insurance took the time to check with FSRA to ensure they are working with a licensed insurance professional or business.
Some of the auto insurance fraud schemes that the respondents said were difficult for them to identify include:
Knowledge that fraud is severely impacting their insurance costs appears to be widespread, at least – 82% of FSRA’s poll respondents agreed that auto insurance fraud is increasing the cost of their premiums. 76% of respondents also indicated that consumers can play a role in preventing auto insurance fraud.
“Auto insurance fraud is an issue that impacts all drivers. Not only does auto insurance fraud cost victims directly, but it can also raise premiums across the province,” said FSRA executive vice president of auto/insurance products Tim Bzowey. “Consumers can play a role in preventing auto insurance fraud, so we are encouraging Ontarians to be informed, know their rights and report suspected fraud. An informed consumer is an empowered consumer.”
The poll’s results coincide with FSRA’s launch of a new public education campaign, simply called “Don’t get dinged by auto insurance scams.” The campaign aims to help Ontarians better identify some of the fraud schemes being used and to educate the public on how to report fraud.
Also this week, the FSRA released its new guidance for insurance companies incorporated in Ontario as well as reciprocals. Designed with international best practices and standards in mind, the new Risk Based Supervisory Framework for Ontario Incorporated Insurance Companies and Reciprocals (RBSF-I) provides guidance to the processes and practices that the regulator will follow when establishing supervisory plans and taking supervisory action.
