Fraud in the Land of the Maple Leaf
Canadian companies reveal that rate evasion cases spiked over 150 percent in one year, with policy residence misrepresentation ranking the highest for fraud. We can speculate that this increase in fraudulent activity at this early stage is due in part to increasing premiums in certain regions, such as metropolitan areas, making higher urban premiums a motivating force as insureds seek lower-tiered insurance in more suburban and rural locations. My research also indicates that approximately half of claims that were prosecuted for fraud also involved some aspect of underwriting fraud.
When a company looks to develop a counter fraud strategy in Canada, they must ensure that they are looking at these early stages of the insurance process in order to prevent significant premium losses and claim payout down the road. Stay safe!