Auto insurance fraud is on the rise in Ontario, and Aviva Canada says stronger action from regulators is more than welcome. As fraud cases climb, the insurer says it’s critical that the industry and government work together to protect consumers.
Aviva Canada’s head of fraud and financial crime Jamie Lee (pictured) called the Financial Services Regulatory Authority of Ontario’s (FSRA) Fraud Reporting Service (FRS) rule a crucial step toward curbing systemic abuse and protecting honest policyholders.
“Aviva fully supports FSRA’s Fraud Reporting Service Rule, which will help the industry quantify the fraud exposure impacting our customers and provide better fraud insights and trends,” Lee told Insurance Business.
According to her, fraud cases are not only increasing – they’re becoming more sophisticated and harmful. The insurer has seen a staggering 76% jump in claims fraud from 2023 to 2024, with the trend continuing to rise this year. The most prevalent schemes involve vehicle theft and staged accidents, often orchestrated through networks of bad actors that include dishonest tow truck operators and collision repair shops.
While welcoming the FRS Rule, Aviva is also urging provincial authorities to go further in their fight against fraud.
“To be able to fully combat insurance fraud in Ontario, insurers need FSRA and the government to provide the tools for us to act when fraud is identified,” she said. “This may include the ability to deny a fraudster insurance coverage, dedicated police resources and stronger fines and penalties."
Aviva emphasized that consumer protection hinges on systemic deterrence – something the new rule may help foster.
“We are eager to partner with FSRA and the government to provide more resources and tools to help the insurance industry prevent innocent customers from becoming victims of fraud,” Lee said.
FSRA’s new Fraud Reporting Service Rule and accompanying guidance are designed to tackle a long-standing issue in the auto insurance sector: the lack of comprehensive, industry-wide fraud data.
Once the Insurance Act amendments are proclaimed into force, all automobile insurers operating in Ontario will be required to submit specific fraud-related information to FSRA on a regular basis.
The goal is to provide the regulator with a clearer understanding of the overall scale of auto insurance fraud and to spot emerging trends that may necessitate regulatory or policy interventions.
According to FSRA, this move toward transparency and accountability could ultimately help stabilize – or even reduce – auto insurance premiums for drivers by lowering system costs. More accurate fraud data will allow for targeted action and more informed regulatory decisions, FSRA stated.
"This is an important step toward more effectively tracking and identifying auto insurance fraud," Glen Padassery, executive vice president of policy and auto insurance at FSRA, said earlier. “Fraud drives up costs for drivers. By improving how fraud is tracked and reported, we’re helping build accountability across the system to better protect consumers."
In addition to improving regulatory insight, the data is supposed to help FSRA evaluate the effectiveness of ongoing fraud-reduction efforts and develop a baseline for tracking changes in fraudulent activity over time.
Recent findings from Aviva Canada underline why fraud remains such a pressing concern in 2025. The insurer reported a 76 percent surge in fraud investigations and a 46 percent increase in fraud detection last year, with auto-related incidents making up 67% of all claims fraud probes.
Much of this activity is being driven by more sophisticated tactics. Fraudsters are increasingly using advanced technology, including artificial intelligence, to forge documents, inflate claims, or stage entirely fictitious incidents. Vehicle theft and staged accidents are rising sharply and Aviva saw a 47 percent increase in identified staged accidents in just the fourth quarter of 2024.
Other troubling trends include “ReVINing” (reselling stolen vehicles with altered VINs), ghost brokers posing as licensed professionals, and misrepresentation on policies, all of which distort the risk pool and raise costs for honest policyholders.
“Fraud impacts Canadians not only financially, but also mentally and emotionally,” Lee said after the publication of the report. “It’s vital for Canadians to stay educated on the rising trends to better protect themselves."
