Toronto, ON (Apr. 11, 2015) – There is a sophisticated new weapon in the war against insurance fraud and its name is CANATICS.
CANATICS analyzes pooled auto insurance industry data, using the most current tools, to identify suspicious claims that individual insurers can then investigate. As of today, the system is up and running and has begun sending alerts to member insurance companies.
“Organized crime rings that stage collisions and fraudulently bill insurance companies should be very nervous right now,” said CANATICS President and CEO Ben Kosic. “For years many of these criminals have eluded detection by spreading their behaviour across multiple insurers. As of today, they can run but they can’t hide.”
Organized insurance fraud reduces road safety and drives up premiums for everyone. A single staged collision can result in more than $100,000 in fraudulent pay-outs. A government-commissioned report from KPMG estimated that insurance fraud overall costs as much as $1.6 billion a year in Ontario.
CANATICS was created following the 2012 report of the Ontario Anti-Fraud Task Force, which said, “…insurers should move aggressively to establish an organization that would pool and analyze claims data in order to identify potential cases of organized and premeditated fraud…”
George Cooke, former Task Force member and current Chair of CANATICS, said: “Organized fraud is an expensive and complex problem that has plagued the Ontario auto insurance system for decades. It was clear that a solution like CANATICS was needed. I’m pleased that through the hard work of the industry, our member insurers, the regulator and government, that the vision has become a reality.”
Kosic said: “Organized crime rings routinely involve medical facilities, body shops and tow truck operators. In one recent case there was even a police officer involved, which demonstrates just how far-reaching and sophisticated these groups can be. We now have an industry-wide solution that is equally sophisticated.”
At the time of its launch on April 1, 2015, CANATICS’ membership represented 75% of the auto insurance market share in Ontario. This critical mass is what makes CANATICS so effective. It provides an industry-wide view that individual insurers could never achieve on their own.
“We’re pleased to have three quarters of the market on board, and we look forward to increasing the participation in the future,” said Kosic.
Canadian National Insurance Crime Services, or CANATICS, is a non-profit organization focused on fighting insurance crime be providing the industry with superior intelligence derived from analytics performed on pooled industry data. CANATICS maintains an unwavering focus on data quality, privacy and security. Learn more at www.canatics.ca.