Don't be a dupe of fraudsters
Debbie Thompson, president elect of the Insurance Brokers Association of Ontario (IBAO), and Rick Dubin, vice president of investigative services at the Insurance Bureau of Canada, discuss 'red flag' indicators of potentially fraudulent auto insurance claims.
Video transcript below:
David Gambrill: Are you the unwitting dupe of fraudulent auto insurance claims? Here are some tips to help brokers avoid getting burnt by unscrupulous auto insurance claimants. I am David Gambrill, welcome to Insurance Business TV.
Insurance Bureau of Canada figures suggest that upto 15% of all Ontario auto insurance accident benefits claims are fraudulent. How can you as a broker avoid being duped in a bogus claim?
Debbie Thompson, I.B.A.O.
Debbie Thompson: The red flags that brokers could look for with automobile insurance fraud, they can take close look at the automobile insurance history of any one of their customers. If there is a frequency of accident benefit claims or they change carriers often, that would indicate to you that they are looking to put in claims when it comes to auto insurance.
David Gambrill: Brokers will frequently be among the first people consumers call when they want to report a claim. Knowing this insurance company investigators want to arm brokers with knowledge they have gained as a result of investigating suspicious claims. They caution brokers to be aware of the following types of claims details which can be warning signs of fraud.
Rick Dubin, Insurance Bureau of Canada
Rick Dubin: The red flags to identify possible staged collisions would be low speed impacts with minor damage, multiple occupants in the vehicles claiming soft tissue injury, usually they involve old or rented vehicles, a policy may just have recently been issued, [towers] are immediately on the spot at the scene of the collision and there is inconsistent statements provided by those involved in the accident.
David Gambrill: Brokers and insurers are both lobbying the Ontario government for whistle blowing legislation that would consumers amnesty for reporting these and other signs of potential fraud. In the meantime brokers see themselves as responsible for educating their consumers about these warning signs.
Debbie Thompson: The measures that brokers can use to help with curbing automobile insurance fraud is simply consumer awareness, engagement and education. If consumers understand that it is an issue in Ontario and that they can help with curbing auto insurance fraud, that would be best measure we can do is educate the consumer.
David Gambrill: Of course it’s not just about brokers educating clients, it’s about brokers educating themselves about how fraud happens, so that they don’t become the unwitting dupes of professional fraudsters. I am David Gambrill, thank you for watching Insurance Business TV.