Aviva Canada, among the most fervent combatants against auto insurance fraud, has said fraud remains rife and is even becoming more common. Canada’s second largest P&C provider has been a long-time supporter of ending auto insurance fraud and has created a dedicated team for investigating cases.
However, it may not be enough and a company executive believes the situation has become worse.
“The system is more broken than it was in 2012,” Gordon Rasbach, vice president of fraud management at Aviva Canada, said Monday. In 2012, an Ontario government led task forced detailed 38 recommendations for combatting auto insurance fraud in the province. Rasbach offered is assessment on the success of the task force while speaking about an Aviva Canada investigation that found body shops are creating fraud invoices.
In response, the company has called on the Ontario government to allow insurance companies to discount drivers who use insurer accredited body shops.
Aviva’s investigation involved placing hidden cameras in select Toronto locations and simulating collisions. 10 damaged vehicles were taken to body shops for repairs and in nine of the situations fraud was observed with inaccurate invoices.
“We were going to go longer with the investigation and stopped it,” Rasbach said. “It just got to a point where every car was coming back with fraud.”
Aviva says some of the invoices revealed billing for new parts that were either not installed or were unneeded. The company points out the one car that was not fraudulent happened to have been repaired by an Aviva accredited shop.