FSRA (CNW Group/Financial Services Regulatory Authority of Ontario)
Ontario’s Financial Services Regulator (FSRA) is proposing a new rule on auto insurance fraud reporting that they believe will help reduce additional costs associated with this type of fraud, as well as consumer harm.
They are now seeking feedback on the proposed rule and guidance around a definition for what constitutes a “fraud event,” when insurers must report information about a fraud event, how often they need to report this information to the FSRA, and FSRA’s approach in administering the proposed rule.
“This new reporting rule could help us better determine the amount of auto insurance fraud in the province, identify fraud trends, and establish a baseline to be able to track the amount of fraud into the future,” said Glen Padassery, Executive Vice President of Policy and Auto Insurance at FSRA, in a statement.
In the regulator’s news release, FSRA said insurers will need to provide them with prescribed information about auto insurance fraud once the proposed rule comes into effect. The FSRA will then determine the steps needed to reduce fraud, consumer harm, and the increased costs stemming from insurance fraud activities.
The consultation period is open until October 14. An overview of the proposed rule will be provided on Aug. 20, 2024, from 1:00 p.m. to 2:00 p.m. ET.
