Insurance Bureau of Canada wants more action to be taken on the problem of insurance fraud
Auto insurance fraud is on the rise in Ontario, Canada, and some insurers believe that relatively little is being done to resolve the issue. The Insurance Bureau of Canada is beginning to urge the provincial government to take action on the issue with the re-introduction of legislation that is meant to specifically combat insurance fraud. The legislation is known as the Fighting Fraud and Reducing Automobile Insurance Rates Act and insurers believe that it would be a major step forward in the fight against fraud.
Fraud presents a costly problem for insurance companies and consumers alike
Insurance fraud is a problematic issue that is often ignored by consumers. This is due to the belief that fraud only ever effects insurance companies themselves. Those that have fallen victim to fraud, however, know how much of a problem it can be. Fraud causes major financial losses for insurance companies, and these losses must be recovered from. In order to recover from these losses, insurers tend to raise rates on the coverage they provide, making auto insurance more expensive.
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Legislation aims to tackle issues like education and promote safe driving while also giving regulators more power
The legislation being highlighted by the Insurance Bureau of Canada is meant to promote safe driving and better education for drivers regarding insurance issues and the role that fraud plays in the auto sector. The legislation is also meant to address the issue of fraudulent claims by providing regulators with more authority and instituting stricter consequences on those that are found guilty of insurance fraud.
Ontario could serve as a powerful example in the fight against insurance fraud throughout Canada
The legislation may help reduce the prevalence of auto insurance fraud in Ontario, which would allow the province to exist and an example to its counterparts throughout Canada. Fraud is not localized to Ontario, of course, and other provinces must also take action of the issue lest insurance rates continue to grow to a point where coverage is no longer affordable for consumers.