How can brokers help combat auto insurance fraud?

Combating Auto Insurance Fraud: The Role of Brokers

Auto insurance fraud is a costly issue affecting insurers, policyholders, and the industry as a whole, with fraudulent claims raising premiums and straining resources.

In Canada, auto insurance fraud is estimated to cost policyholders $1 billion annually, according to the Insurance Bureau of Canada.

Fraud Classifications and Trends

Insurance fraud involves any deliberate deception for financial or personal gain, and brokers can play a crucial role in preventing it.

The Importance of Brokers in Fraud Prevention

As the first point of contact for customers, brokers are uniquely positioned to detect suspicious activity early, educate policyholders, and help prevent fraud before it escalates.

Insurance fraud involves any deliberate deception for financial or personal gain.

By providing support in combatting fraud, brokers can help mitigate these effects and create a more honest and trustworthy insurance industry.

Author's summary: Brokers play a crucial role in preventing auto insurance fraud.

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Canadian Underwriter Canadian Underwriter — 2025-11-03

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