Posthaste: Many Canadians could be committing insurance fraud — and don't even know it
Many Canadians are committing insurance fraud even if they don’t know.
More than 90 per cent believe others commit small insurance frauds by omitting information in a claim, while only seven per cent of respondents believed they have done so themselves, according to a recent survey by Toronto-Dominion Bank.
“Many Canadians don’t realize that small omissions or outdated information — details that are easy to overlook — can create challenges down the road,” Niro Kandasamy, assistant vice-president of fraud and special investigations at TD Insurance, said in a news release.
“Many issues can be easily corrected when they’re caught early, which is why reviewing and updating your policy matters. Left unaddressed, some details may delay a claim or affect coverage when customers need support the most.”
Less than 60 per cent of Canadians were able to recognize several real-world scenarios that can be deemed insurance fraud, such as not updating mileage after driving more frequently, not disclosing tenants on a home policy or leaving a partner off an insurance policy.
“Often unintentional, these oversights can create confusion or complications at claim time and may leave people less protected than they expect,” the report said.
Despite the misunderstanding, 79 per cent of respondents were aware that insurance fraud is a serious issue and 90 per cent are aware it raises insurance premiums for everyone.
Intentional insurance fraud is also a serious issue for insurers.
Aviva Canada said there was a 46 per cent increase in claim fraud detection in 2024, with auto-related incidents accounting for 67 per cent of the investigations.
It also said staged accidents were up 47 per cent in the fourth quarter of 2024, and there was an increase in the use of artificial intelligence to falsify documents.
“People are getting more sophisticated and innovative in their approaches when engaging in potentially fraudulent activity, making it increasingly difficult for the average Canadian to spot,” Jamie Lee, head of financial crime and fraud at Aviva Canada, said in a release .
“Insurance fraud costs Canadians $1 billion per year in added premiums. It’s vital for Canadians to stay educated on the rising trends to better protect themselves.”
TD is encouraging people to annually review their policy, update information in the event of life changes and ask questions if they’re unsure about what needs to be disclosed.
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Bitcoin has tumbled more than 40 per cent from its all-time high, but one Wall Street firm believes the cryptocurrency could be on the verge of a big revival.
Prices are currently trading at about US$70,000, but Bernstein predicts it could reach US$150,000 in short order.
The firm said in a report Tuesday that major traders have been adding bitcoin to their portfolio during the downturn, indicating confidence among big-time investors.
Less violability could be on the horizon for the market as well, as most bitcoin owners have held the currency for more than a year.
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McLister on mortgages
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Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
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