Since the COVID pandemic has arrived, RSA, a Canadian general insurer, has found an increase in the number of suspicious claims being flagged for possible fraud investigation compared to those during pre-pandemic times.

Meagan Maher, a special investigations unit specialist with RSA shared with Canadian Underwriter that they have observed “more people committing insurance crimes that don’t have a history of it.”

Why are more people filing false claims since the arrival of COVID? Many believe it is due to a report the Insurance Bureau of Canada wrote which made a connection between a rise of insurance fraud and a drop in the economy. This is because these consumers feel they can use some of the money they pay into their insurance policies to cover the financial losses they have suffered due to COVID.

Lori Craig, national underwriting consultant at RSA, said she believes the increase in fraudulent claims is driven by the financial issues that have arisen due to this pandemic. RSA have found many claims where claim holders are looking for ways to offset paying for vehicles and other financial properties.

A number of fraudulent vehicle claims RSA have received deal with drivers on the empty roadways. Since more people are at home, there are less drivers present to witness accidents that occur. Many of these drivers do not contact the police or find their way to the hospital claiming it is out of fear of contracting COVID. This allows these offenders a way out of properly reporting a sizable loss to their insurer that can be investigated.

Repair shops and towing companies are also taking advantage of this pandemic. Some of these businesses are preying on their customers’ fear of contracting this virus by charging higher than normal cleaning and storage fees, as well as delaying repairs to their vehicles.

Property owners have thrown their hat into the COVID fraud game. Property damage and loss claims have been filed and flagged as being fraudulent. Some insurance claim holders suffering financial difficulties commit water and fire damage to their property to collect money to put towards these “damages.”

Insurers are finding fraudulent virtual claims on the rise as well. False virtual claims are coming in various forms, from claimants saying they have received ‘virtual care’ as a form of treatment, to computer virus scams, and cyberattacks on businesses.

Insurers and consumers have to be diligent during this COVID period. Knowing what is covered in a policy makes filing a genuine claim easier for both parties. Insurers can help policy holders get back on track with the damages they have experienced. Please reach out to us if you have any questions about filing an insurance claim.