Ontario’s financial services regulator is moving forward with new measures to address auto insurance fraud through more structured reporting requirements and data collection practices.
The Financial Services Regulatory Authority of Ontario (FSRA) announced that its Fraud Reporting Service (FRS) Rule and Guidance will require auto insurers to submit specific fraud-related information to FSRA on an ongoing basis.
The data collected will support the regulator in determining the overall scale of auto insurance fraud in the province and in identifying emerging trends that may require regulatory or industry intervention.
FSRA also aims to use the information to establish a baseline for tracking changes in fraud levels over time and to measure the effectiveness of anti-fraud initiatives. FSRA said the rule has been approved by Ontario’s Minister of Finance. It will apply to all automobile insurers in Ontario and will come into effect once the government proclaims the related amendments to the Insurance Act into force.
According to FSRA, better identification and response to fraud can help reduce system costs, which may lead to more stable or lower auto insurance premiums for consumers. The regulator emphasized that tackling fraud is a shared responsibility across insurers, service providers, and regulators, and that improved transparency will contribute to broader consumer protection efforts in the sector.
FSRA pledged to work with both the insurance industry and the Ontario government to ensure insurers are informed and adequately prepared to meet the new requirements. The regulator plans to provide guidance and support throughout the transition to help ensure the Rule is implemented effectively.
"This is an important step toward more effectively tracking and identifying auto insurance fraud," said Glen Padassery, executive vice president of policy and auto insurance at FSRA. “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.”
The introduction of the FRS Rule builds on FSRA’s broader work to improve auto insurance oversight in Ontario, which includes recent consultations on rate regulation, reform of claims handling practices, and efforts to reduce regulatory burden for insurers.
