Fraud Prevention Month is an annual awareness campaign which aims to educate Canadians on how to recognize and protect themselves from becoming a victim of fraud. Insurers are doing more than ever before to protect their customers, and by joining Équité Association, members have access to specific anti-fraud expertise designed to prevent and disrupt insurance crime.
Shelley Khan, Vice President, Claims Legal Counsel, Litigation and Special Risks at Desjardins Group shines a spotlight on advances in technology that are enabling better fraud detection and prevention. Desjardins Group is the largest cooperative financial group in North America and has been named one of Canada's Best Employers by Forbes Magazine and Mediacorp.
Équité: For Fraud Prevention Month, what type of insurance fraud would you like to raise awareness about and why?
- Shelley Khan (SK): Fraud within auto insurance remains a growing concern for Canadians, with a significant increase in fraudulent claims and investigations. There is a large economic impact associated with increased auto fraud, which costs Canadians approximately $1 billion annually. Across the insurance industry we are seeing an increase in vehicle theft and re-VINing and artificial intelligence (AI) enabled fraud. We are also seeing growing collaborative efforts across levels of government, law enforcement and other insurers to combat and significantly reduce the severity and frequency of fraud within the market.
Équité: How have fraud trends changed overtime?
- SK: Technology and recent AI advancements have been one of the largest trends in fraud to change overtime. The use of advanced technology has allowed for better fraud detection and prevention. However, we have seen an increase in fraudulent activities committed with advanced technology, like AI.
Technology will continue to evolve and adapt as the years go on, and it is crucial that insurers and businesses continue to adapt with it. Desjardins Insurance is staying up to date and implementing different resources to be able to utilize AI to detect fraudulent behaviours. It is also important that we learn and adopt new safe practices; and that we are educating our members and clients to ensure they know how to spot and detect fraudulent behaviours. We are seeing collaborative efforts across the entire industry, as we all have a role to play in trying to combat fraud and remain protected.
Équité: What is your organization doing to protect your clients and the communities they live in from the impacts of insurance fraud?
- SK: At Desjardins Insurance, we take the safety and protection of our members and clients incredibly seriously. We have implemented several measures to protect clients from fraud including regular education and awareness on fraud detection and scams to ensure they feel protected while working with us, as well as in their everyday lives.
For example, we never ask that our members and clients use a link to log into our services, rather we direct them to login through our secure website or app to access their profiles and documents. We have partnered with Tag to offer clients with high-risk vehicles an opportunity to install a tracking device. In the event their vehicle does get stolen there is an increased recovery rate.
Desjardins Insurance uses several methods to identify fraud, including becoming a member of Équité Association, national authority on insurance crime and fraud prevention. We have a proactive approach to identify and investigate fraud as quickly as possible. By leveraging technology, enhancing safety measures and promoting education and awareness, Desjardins Insurance aims to protect clients from the financial and emotional toll of fraud.
Fraud always has a victim, and criminals typically target those who are the most vulnerable. On behalf of the insurance industry, Équité works with decision-makers to close gaps and vulnerabilities in existing regulations and policies. In collaboration with Équité Association, our members are working to protect Canadians against insurance fraud and crimes.
