In response to the recent announcement of Desjardins Insurance and Aviva Canada’s joint investigation on the fraudulent distribution of auto insurance policies, the Insurance Brokers Association of Ontario (IBAO) lends its support and applauds both organizations’ efforts to combat fraudulent activity within auto insurance in Ontario. These efforts are in direct alignment with the IBAO’s recommendations to the provincial government and the government’s acknowledgement of the need to address fraud in the system.
“Fraud is an ongoing issue in certain locations across the province, which affects the insurance premiums of all Ontarians,” said IBAO CEO Colin Simpson. “This latest incident where an unauthorized seller sold fake insurance policies to members of the public is illegal and unethical. The important work Desjardins and Aviva Canada have undertaken is a critical step towards consumer protection in this province.”
March is Fraud Prevention Month, an annual awareness campaign to help consumers recognize and report fraud. Within Ontario’s auto insurance industry, fraud costs insurance companies hundreds of millions of dollars every year, which is then passed on to policyholders. High-risk drivers and individuals with minimal knowledge of the insurance purchasing process can be incented to purchase low-cost policies, which may be fraudulent.
To protect yourself against purchasing fraudulent insurance, use an insurance broker. Brokers are licensed professionals regulated by the Registered Insurance Brokers of Ontario (RIBO), the provincial regulator and governing body. In order for an insurance broker to be eligible to sell insurance products and advise the public on insurance-related matters within Ontario, they must carry a RIBO-issued license and operate under a licensed brokerage. To find an insurance broker in Ontario, visit ontariobrokers.ca.
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