Proven Cases of ICBC Fraud Almost Non Existent
Insurance Companies often talk about the high cost of fraud and ever rising claim rates. These discussions are often abstract or accompanied with large numbers. When you look behind the data there is often little to substantiate the numbers.
This pattern seems to be the case with ICBC’s claims that fraud costs policy holders $600 million per year. The reality, however, is there is no data to substantiate this.
Recently ICBC revealed, pursuant to an information request, the number of successful convictions against fraudsters. The numbers are negligible.
Richard McCandless, a self described “retired senior BC government public servant” made an information request for the number of fraud charges laid and the number of resulting convictions. ICBC replied and the data revealed that there are very few successful prosecutions and the trend, if anything, is moving downward.
Fraud is real and insurers and ratepayers have to pay the price. Insurers overstating fraud, however, is equally real and the public is entitled to be aware that proven fraudulent claims make up a small percentage of what insurers would have us believe.