By: Luke Jones, Published on December 31, 2017 11:36 AM, Last Update on December 31, 2017 08:38 AM
Aviva Canada has released a statement after the Ontario government outlined its plans to reduce auto insurance premiums further. The second largest property and casualty insurance provider in Canada announced that is praises the changes, especially the shift towards treatment and care for recovery processes.
"Ontario's decision to place treatment and care – not cash – at the heart of the recovery process must be applauded because genuinely injured claimants have one primary aim, which is to return their health and life back to normal.
"We are also pleased with the commitment to establish a Serious Fraud Office in the spring of 2018, as recommended in Aviva's recent Fraud Report 2017. We estimate that auto insurance fraud costs Canadians up to $2 billion every year and, sadly, it's the vast majority of honest drivers who are paying for the fraudulent minority through high insurance premiums. The cost of auto insurance has nowhere to go but up if we fail to address the excessive numbers of injury claims in Ontario and the escalating costs surrounding them."
Among the changes announced by the province is the creation of a serious fraud office. Ontario announced it will form the Serious Fraud Office (SFO) in an effort to clamp down on auto insurance fraud. Many industry organizations have praised the decision, although remain cautious about its potential results.
Auto insurance fraud in Ontario is a major concern, costing the industry nearly $2 billion per year. Insurance companies put this cost back on to customers, who have to pay higher premiums. It is one of the core reasons why the province is the most expensive insurance market in Canada.