Ontarians aware of pervasiveness of insurance fraud & support new actions to combat it

 Ontarians, who pay among the highest auto insurance rates in the country ($1,428 per driver), are aware of insurance fraud and supportive of initiatives to fight it, according to the second annuel Aviva Fraud Report, release today

The report contains new polling data on public awareness about insurance fraud in Ontario and shows that drivers are aware of the severe problem. In fact, over 50% of Ontarians believe that 25% of claims are fraudulent. It further shows that the driving public is supportive of actions to combat fraud.

In 2017, it was estimated that Canadians were paying $2 billion per year out of pocket for costs associated with different types of fraud perpetrated against the auto insurance system. Over the past year in Ontario alone, consumer awareness on insurance fraud has grown. For example:

• 88% of Ontarians think that auto repair shops inflate the cost of vehicle repairs, compared to 77% in 2017.
• 86% of Ontarians support government and law enforcement agencies investing more resources to investigate and prosecute fraudulent claims, compared to 78% in 2017

“Dishonest claimants and service providers continue to cheat consumers. We are seeing a troubling and egregious form of fraud that includes the fraudulent sale and issuing of auto policies,” said Colm Holmes, President and CEO, Aviva Canada. “We need to do better for honest drivers. That’s why Aviva is fighting fraud. Honest drivers pay higher premiums because of criminal fraud. They know it. We know it. And the time has come to fight back.”

Key findings of the Aviva Fraud Report 2018

• 86% of Ontarians feel that more needs to be done to combat fraud.
• 82% feel the increase in their auto insurance premium is due to fraudulent vehicle repairs, to vehicle theft or to personal injury claims.
• 73% agree that cracking down on fraud would reduce their current auto insurance premium.

Support of new actions to fight fraud

The results show clear support from Ontario drivers for new actions by government and the insurance industry that can help address situations where:

• people exaggerate claims,
• automotive, healthcare and legal suppliers resort to fraudulent practices, and
• opportunists fraudulently sell policies online and distribute policies.

To effectively tackle auto insurance fraud

• 74% support a new set of provincial insurance fraud offences.
• 70% feel that insurance companies need to invest more resources to combat fraud. 60% support an online fraud intelligence database that consumers can access:

o   72% would use it look up an auto body shop following a car collision

o   58% would use it to look up a healthcare practitioner for treatment of injuries following a car collision

To help lower insurance rates

• 59% believe that insurance companies should be mandated to invest in an insurance fraud management model and a clear set of penalties and fines for those convicted of fraud.

To protect consumers

• 53% feel that government, insurance companies, other organizations fighting fraud, and police all need to take responsibility for warning consumers about insurance fraud schemes.
• 77% feel that insurance companies that have uncovered fraud schemes should make the information available to the public in real time.