Not immediately. Ontario’s Fraud Reporting Service rule is not yet in force, and FSRA says the reporting system itself will not directly produce consumer discounts.
We reviewed the current FRS Rule status page, the complete automobile fraud-reporting guidance, and its consumer fraud-tip page to understand what the regulation covers and its potential consequences.
Ontario’s Fraud Reporting Service (FRS) rule, which will require auto insurers to report suspected auto insurance fraud, was granted ministerial approval on June 3, 2025. The rule will help FSRA better understand insurance fraud in Ontario.
What Is the Current Status of the FRS Rule?
The FRS rule is not yet in force. It can’t come into effect until related amendments to the Insurance Act are proclaimed and a waiting period after ministerial approval. At this point, there’s no start date for the guidance or fraud reporting.
Once in place, the guidance is expected to help FSRA establish a fraud baseline, measure the problem, and understand trends. At this stage, insurers won’t be able to access each other’s fraud reports. FSRA may develop another phase that would give insurers access to the information. The guidance would need to be updated accordingly.
| Milestone | Status |
|---|---|
| Ministerial approval | Approved June 3, 2025 |
| Rule in force | No. It depends on related Insurance Act changes being proclaimed and the required period after approval |
| Guidance effective date | Not yet determined |
| Insurer reporting | Begins only after the rule takes effect and implementation requirements apply |
What Will Insurers Have to Report?
Insurers will be required to report suspected auto insurance fraud related to insurance applications and claims. Insurers will also report fraud involving service providers, distribution channels, and insurer employees. Examples include:
- Staged auto accidents
- Providing false information on an insurance application
- Inflated repair bills
- Fake insurance coverage cards or insurance slips
Fraud reporting occurs quarterly. Reports are due within 45 days after the end of the quarter. Insurers must generally de-identify names, identifying numbers and other identifying details unless disclosure is necessary.
What Would Trigger a Report?
Insurers will be required to report fraud where there are verified facts or evidence supporting that fraud has more likely than not occurred, and certain actions have taken place. Suspicion alone isn’t enough.
Some actions that would trigger a report include:
- Escalating a file for further investigation
- Declining to pay the claim
- Cancelling the policy
- Paying a claim even though there are reasonable grounds to believe fraud occurred
- Closing a file because the claimant abandoned the claim
What Does a Report Mean for a Consumer?
Insurers use various factors when pricing your policy under FSRA-approved rate-setting models. Be upfront and honest when providing information to your insurer.
If your claim is questioned:
- Provide accurate and complete information about your claim. Keep copies of documents.
- If you disagree with the insurer’s decision, ask for the decision and reasons in writing. Use the insurer’s formal complaint process or ask a free, independent ombudsperson service to examine your complaint.
- Remember that a report does not mean fraud definitely occurred. A fraud report isn’t a court decision and doesn’t result in a criminal conviction.
Will the Rule Reduce Premiums?
FSRA is clear that the Fraud Reporting Service by itself won’t lead to discounts for consumers. However, FSRA hopes better fraud data will reduce costs for everyone. We will have to wait and see.
Read More: Other Factors That Affect Car Insurance Prices in Ontario
How Can You Report Suspected Auto Insurance Fraud?
FSRA encourages Ontarians to report suspected auto insurance fraud using its consumer form. Don’t investigate suspected fraud on your own. Report your concerns, and call the police if a crime is in progress or you’re in immediate danger.