Fraud Prevention Month: Tips to safeguard your insurance

March is Fraud Prevention Month, a time to raise awareness about fraud and scams, including those targeting the insurance industry. 

Alongside regulatory partners at the Canadian Insurance Services Regulatory Organizations (CISRO), the Alberta Insurance Council (AIC) has created valuable resources to help consumers and brokers stay one step ahead of fraudsters.  

The best defense against constantly evolving threats is for both brokers and consumers to stay informed and vigilant to detect and prevent deceptive tactics.

What you can do as a broker 

For licensed insurance brokers, here are five ways you can help protect clients: 

1. Prevent identity theft: Be clear about how and when you will communicate and handle the collection of their personal information, to ensure security.  
2. Document any changes: Ensure that any policy changes are properly documented. This protects you and your client. 
3. Cross-check information with third party sources: Regularly cross-check information with trusted third-party sources to help prevent fraud and protect your clients and your business. 
4. Use secure systems: Implement secure communication channels and data protection measures to safeguard sensitive client information. 
5. Stay informed and promote awareness: Ensure that you and your team stay on the pulse of emerging fraud trends and cyber security threats. Share fraud prevention strategies and red flags with your staff.  

What you can do as an insurance consumer 

For insurance consumers, here are four tips to prevent insurance fraud: 

1. Verify licensing and registration: Always confirm that the person or company offering insurance is licensed and registered with the appropriate regulatory bodies in your area. Fraudsters often post as fake agents or representatives of legitimate companies. Use AIC’s agent lookup tool to verify your insurance professional is licensed. 
2. Understand your policy: Insurance fraud often targets people who do not fully understand their policies. Fraudsters exploit knowledge gaps or misunderstandings of terms and conditions. Make sure you understand your insurance contract and that it suits your needs.  
3. Protect personal information: Fraudsters may use stolen or hacked personal information to make fraudulent claims. Never share personal or financial details over the phone or online unless you are certain of the recipient’s identity.  
4. Stay informed, cautious, and proactive: If pricing seems too good to be true, it probably is. Take the time to research, ask questions, and read through your policy to ensure coverage matches what was discussed.  

By staying informed and vigilant, both brokers and consumers can play a crucial role in preventing insurance fraud. If you suspect fraud, report it to your insurance provider immediately. Together, we can create a safer, more secure environment for everyone.  

What AIC does to help 

AIC is committed to serving and protecting Albertans through the professional qualification, licensing and regulation of insurance agents, brokers, and independent adjusters. From licensing to investigations, AIC services ensure Albertans can trust in the expertise and integrity of their insurance advisors.