Greatest Overall Complexities in Fraud Prevention

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Insurance was created to provide a foundation of security, and insurance crime fundamentally undermines this system, compromising that sense of safety and erodes our peace-of-mind. 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.

It is estimated that insurance crime costs Canadians between $3-5 billion per year. Insurance fraud is not limited by product, geography or insurer; and our industry solutions must evolve to stay ahead of criminals as they cross companies, provinces and industries.

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. They are on the front lines of the impact that fraud has on honest, hardworking Canadians. They see first-hand how frauds devastates individuals, families and communities.

As the industry looks to the future, we are focused on the solutions to overcome:

Healthcare Fraud: When it comes to detecting healthcare service provider fraud, complexities arise because this crime is not limited to one product or one insurer, and typically there are many people working together to obscure their fraudulent actions. New technologies are emerging every day, making criminals harder to detect, intercept and stop.

Insurance crime has never been more complex, which is why investments in leading-edge technology are giving Équité and its members the upper hand in the fight against insurance crime. Through continued industry collaboration and investments in leading-edge technology we are working to spot suspicious trends with greater speed to lock fraud out before it enters the system.  

Evolution of technology in anti-theft devices: The current theft prevention standards included in Canada's Federal Motor Vehicle Safety Regulations are outdated. Today’s criminals are taking advantage of these outdated standards to exploit vulnerabilities, allowing them to steal vehicles in as little as 15-20 seconds.

Most industries in this country are regulated to have adequate cyber security installed to protect the technology systems in products sold to Canadians. Canada has modern regulations in place to protect its citizens from cyberattacks; the modernization of anti-theft regulations for motor vehicles is a logical step that follows benchmark practices across all industries.

Canada's Federal Motor Vehicle Safety Regulations have not been updated since implemented in 2007, before keyless and remote start technologies were introduced in vehicles. Équité is also keeping in mind that criminals are using technology to do more than steal vehicles. From stolen identities to vehicle finance fraud and more, Équité is monitoring how technology can identify these frauds before they victimize individuals and communities.  

Équité is advocating on behalf of in the insurance industry to encourage Transport Canada to take decisive action to update Canada's Federal Motor Vehicle Safety Regulations by adopting the recently updated safety standards by UL Standards & Engagement (ULSE).

Data security in vehicles: The United Nations Economic Commission for Europe has set the stage for automotive industry compliance, aimed at streamlining global vehicle safety standards, and created a baseline for all connected electronic components within a vehicle with UNECE R155 (which came into effect July 1, 2024).  The regulation recognizes the role of cyber security in safeguarding vehicles, which extends to public and road safety. This framework requires automakers to issue a Certificate of Compliance for Cybersecurity Management Systems, and have tests performed by the Approval Authority or the Technical Service itself or in collaboration with the vehicle manufacturer.

As Canada’s national authority on insurance crime and fraud prevention, we are monitoring and advocating for best-practices, especially when it comes to the second largest purchase most Canadians make in their lifetime after their home.

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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