2016 March Newsletter
ICBC has recently undertaken an extensive ad campaign aimed at pointing out the degree and extent of fraud and the impact of that fraud on the cost of insurance. There is no doubt that fraud can drive up the cost of insurance and that insurance companies need to be on the look-out for it, but what is the true extent of the existence of fraud in BC and is it on the rise as ICBC’s ad campaign would have you believe? In reality, there are no statistics in BC to prove or refute an assertion that fraud claims are on the rise. ICBC has recently been before the BC Utilities Commission, seeking an increase to premiums. During the course of their application, ICBC was asked the question of whether fraudulent claims were on the rise. Their answer was as follows:
- ICBC’s claims systems currently are not able to accurately calculate the incidence of fraudulent claims per year, therefore ICBC is not able to determine whether there is an increase in the incidence of fraud during the recession.
If ICBC’s claims systems is not able to calculate the incidence of fraud, what is ICBC’s ad campaign all about?