TORONTO, July 27, 2012 – Insurance Bureau of Canada (IBC) congratulates the Ontario government on the latest status report from the Auto Insurance Anti-Fraud Task Force. This is an important step in the fight against fraud. Of particular note is the inclusion of an estimate of the quantum of auto insurance fraud in Ontario, which a study conducted by KPMG has determined to be upwards of $1.6 billion.
“These are important steps and we thank the government and other stakeholders who are working so hard to fight fraud,” said Ralph Palumbo, Vice President, Ontario, with IBC. “We all have a role to play in fighting the problem of fraud, raising awareness and lowering tolerance.”
Yesterday, IBC launched its latest consumer awareness campaign. The objectives of the campaign are to stimulate feedback from drivers and other stakeholder groups on how to bring down the cost of auto insurance premiums in the Ontario and to make it easier for consumers to understand their own insurance policies. The campaign plans stops in Kingston, Windsor, London, Thunder Bay, Kitchener, Brampton and Scarborough in the Greater Toronto Area. But part of the issue facing consumers is recognizing that fraud exists; that it costs consumers dearly and that everyone – the public, the government, insurers and other stakeholders – all have a responsibility to work together to combat fraudulent practices. Palumbo added, “Insurance premiums are driven by claims costs and right now costs have been driven through the roof in Ontario as a result of fraud, abuse and over-utilization of med-rehab benefits in the system. On the criminal fraud front, the media has recently highlighted cases of staged collisions, and the conduct of private, for-profit health care clinics and others who capitalize on the rich benefits available to Ontario drivers. One criminal gang netted an estimated $25 million. This has to stop.”
For more information on reporting insurance crime, visit www.ibc.ca or call 1-877-IBC-TIPS to submit a confidential tip or to learn more about insurance fraud.
About Insurance Bureau of Canada
Insurance Bureau of Canada is the national industry association representing Canada’s private home, car and business insurers. Its member companies represent 90% of the property and casualty (P&C) insurance market in Canada. The P&C insurance industry employs over 114,000 Canadians, pays more than $7 billion in taxes to the federal, provincial and municipal governments, and has a total premium base of $40 billion.
To view media releases and information, visit the media section of IBC’s website at www.ibc.ca and for IBC on Twitter follow @insurancebureau.