Ontario Budget Takes Aim at Auto Insurance Fraud
Toronto - As Fraud Prevention Month is set to kick off, Ontario Minister of Finance Charles Sousa announced that the government's budget includes a plan to establish a "serious fraud office" with a special focus on auto insurance fraud says, Insurance Bureau of Canada (IBC).
"Auto insurance fraud continues to be a serious problem and has plagued the Ontario auto insurance system costing as much as $1.6 billion a year," said Kim Donaldson, Vice-President, Ontario, Insurance Bureau of Canada. "We are thrilled to see the Government make the fight against fraud a priority."
Also announced in the Budget, the Government is working with the regulator on ways to assist with the rapidly expanding sharing economy. It will enable new insurance products for ride-sharing services to be approved faster, even if interim approvals are necessary. The Government and the Financial Services Commission of Ontario (FSCO) will also work with insurers to develop legislative and regulatory changes necessary to integrate the sharing economy into the auto insurance system.
Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 120,000 Canadians, pays $8.2 billion in taxes and has a total premium base of $49 billion.