Which is the most concerning type of insurance fraud?

Aviva Canada’s claims investigation data shows a staggering 400% increase in staged collisions from 2024 to 2025, underscoring how rapidly this type of fraud is escalating, a company spokesperson says.

A new cross-Canada survey conducted by Nanos for Aviva highlights Canadians’ concerns about insurance fraud. It found the number one concern is the growing frequency of staged vehicle collisions — deliberate on-street or on-highway crashes that can also be extremely dangerous for other drivers.

Released during Fraud Prevention Month, the online survey of 1,569 Canadians aged 25 or older used research commissioned by Aviva and was conducted between Jan. 23 and Jan. 27.

When asked about their top three threats when thinking about insurance, 13.8% of respondents pointed to deliberate vehicle collisions staged for fraud purposes, 11.7% cited vehicle repair-related fraud and 7.8% said unlicensed individuals posing as insurance brokers.

However, it also appears Canadians are not clear about the personal impacts of insurance fraud. When asked about their top three insurance threats, 13.3% said they were ‘unsure’ and 15.4% responded ‘none of the above.’

Still, nearly six in 10 (59%) of Canadians polled agree they are concerned about the cost of fraud in the insurance system because it pushes up the cost of their premiums.

Punishments are also seen as too weak, they say, with 43% believing current penalties for committing insurance fraud are not strong enough and only 16% saying punishments are adequate.

The survey also found about two in five Canadians (42%) say they are worried about becoming a victim of fraud, while only 19% are not worried.

Mandatory fraud reporting

In Ontario, the province’s insurance regulator is moving ahead with its auto insurance fraud reporting service this year, with hopes the initiative will go national, a Financial Services Regulatory Authority of Ontario (FSRA) executive said Nov. 25 at KPMG’s 2025 Insurance Conference.

The service aims to establish a baseline for fraud in the industry, which can be difficult to pinpoint. Équité Association says it’s estimated insurance crime of all types costs Canada between $3 billion and $5 billion a year.

“Insurance fraud/insurance crime continues to be one of the single-largest cost drivers in the product today,” says Glen Padassery, executive vice president of policy and auto/insurance products at FSRA. “I’m talking about auto insurance, but also for property and casualty at large.”

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It will be the first time in Canada that insurers will be mandated to start reporting all suspicious cases of fraud to FSRA or through a service provider.

“And [in 2026], the new fraud reporting service will be up and active, and we’ll be getting all insurers to start reporting in Ontario,” Padassery says. “The hope is that you’re going to see this as a national initiative, and other jurisdictions will carry forward with that with us…”

Jason Contant

Jason has been an award-winning journalist with Canadian Underwriter for more than a decade, including the past three years as associate editor and, before that, as digital editor for seven years.