How Insurance Crime Impacts Canadians

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Insurance crime has real and devastating consequences for those affected by it. Insurance was created to provide a foundation of security, and insurance crime fundamentally undermines this system, compromising our safety and security.

It is estimated that insurance crime costs Canada between $3-5 billion per year. Any intentional activity to commit fraud by making inaccurate claims for financial gain constitutes insurance crime, which is a serious matter and one that has become more pervasive and emboldened in recent years.

Insurance crime can refer to a wide-array of acts, including auto theft, staged collisions, medical services fraud, accident benefits fraud, identity theft, and ghost brokers, among others. Its impacts expand far beyond the insurance industry to disrupt public safety and negatively affects the finances for honest, hardworking Canadians.

Financial Impacts

Both individuals and the insurance industry bear extraordinary costs in premiums, deductibles, rental cars, and other transportation costs at a time when the cost of living and inflation are already challenging for Canadians. Additionally, there are significant costs incurred by the government, through law enforcement and the administration of the criminal justice system, which affect all tax payers.

However fraud occurs there is a consistent pattern of funds from fraudulent claims used to fund organized crime networks. Addressing insurance crime and fraud is an important step in keeping Canadians safe and stemming the flow of funds into organized crime.

Public Safety Impact

Insurance crime affects all of us, often targeting the most marginalized in our communities, including newcomers and young people who may not know how to recognize scams. When it comes to accident benefits fraud, criminals may try to maximize insurance payouts without ensuring the injured person receives the care they need.

These crimes hurt individuals and our communities. Awareness is a key step in preventing insurance crimes. To support our public awareness efforts, our experts provide tangible advice that contributes to protecting Canadians against insurance crime.

Industry Collaboration

The insurance industry founded Équité Association to protect Canadians and contribute to a more equitable world by tackling insurance fraud and crime. Our insurance members, which span personal and commercial, auto and property insurers, are deeply invested in protecting their customers and keeping insurance crime out of Canada.

As Canada’s national authority on insurance crime and fraud prevention, Équité Association is dedicated to eradicating insurance crime in Canada. On behalf of our members, our advanced analytics capabilities allow us to share intelligence and effectively track the evolving trends of insurance crime.

Our Investigative Services team is comprised of expert investigators, with a depth of knowledge and experience in complex fraud investigations, auto and cargo theft, vehicle identification, and more. Our strong working relationships with law enforcement partners and government agencies across the country and internationally support our shared vision of reducing and preventing insurance crime and its impacts on Canadians.

By joining together, our members are part of a leading national response in combating insurance crime and disrupting organized crime. Together, we are creating safer and more equitable communities.

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