IBC: Fraud is an attack on everyone – insurers, consumers, law enforcement

In a recent statement, the Insurance Bureau of Canada (IBC) made clear that it is serious about addressing the issue of insurance fraud – particularly auto insurance fraud. But it needs help from everyone involved.

IBC president and CEO Don Forgeron was invited to serve as keynote speaker for the Ontario Association of Chiefs of Police Annual Meeting, held earlier this week. In his speech, Forgeron underlined that the issue of auto insurance fraud is everyone’s problem, not just the insurers’.

“I know you’ve all got a lot on your plate. You’re being pulled in a lot of different directions – and there are never enough resources for all the tasks at hand. You need to make choices. You need to prioritize what’s in the public interest,” he said.

“But I also know this: Fraud is an attack not only on insurance companies, but on you and your people. It’s an attack on consumers and society at large. Many of these criminals seek to waste your time – and your resources.”

Forgeron noted that the IBC has been working with law enforcement on several initiatives to combat fraud – an issue that’s not only limited to Ontario, but the rest of Canada as well. Specific to Ontario, the bureau has partnered with the OPP to launch an education and awareness campaign to enlighten drivers about the dangers of fraud. IBC also has a program that trains law enforcers on the latest trends in vehicle thefts.

The leader took the opportunity to outline a three-point approach to tackling the national issue of auto insurance fraud. According to Forgeron, those three points are:

• The insurance industry has to do more in the fight against fraud – insurance companies have begun to cooperate to identify fraud; this allows the companies to spot fraud trends together that they would normally miss had they been searching for clues alone. To encourage more collaboration, the IBC is establishing a framework to improve the way insurers share information for purposes of fraud detection.
• There needs to be more meaningful penalties against those who commit fraud – Forgeron called for stronger sentences to serve as a deterrent to fraud, citing the many instances of fraudsters who – despite being found guilty by the law – wind up back in business not too long after.
• Law enforcement can play a greater role in fighting fraud – The insurance industry has been tackling small cases of fraud ever since, but it is systemic fraud – the kind perpetrated by criminals – that the industry will need support from law enforcement to handle. IBC recently joined an investigation into car thefts with the Ottawa Police Central & East Division, codenamed “Project Ravin,” and managed to help recover 19 cars valued at $835,000. Forgeron says such joint investigations send a clear signal to criminals, and hopes that authorities are willing to cooperate with insurers on tackling both day-to-day fraud concerns and large-scale criminal schemes.

“No single group can solve the challenge of insurance fraud on its own,” Forgeron said in closing his speech. “Insurers can’t do it. Not on their own. Regulators and government can’t do it.  And law enforcement can’t do it.”

“But each of us has a role to play. Each of us can do our part.”