Ontario’s Minister of Finance approved a new Fraud Reporting Service rule on June 3, 2025. However, the rule is not yet in force because related amendments to the Insurance Act must first be proclaimed.
For this article, our team reviewed FSRA’s current rule status page, detailed reporting guidance, and consumer instructions for fraud prevention and reporting.
Tell your insurer about suspicious activity connected with your policy or claim. For suspected Ontario auto insurance fraud, you can also use FSRA’s fraud-tip form. Contact police if you believe a crime has occurred or anyone is in immediate danger.
Read More: Learn About Car Insurance in Ontario
Fraud Reporting Service Rule for Auto Insurance in Ontario: What’s Happening?
The rule and accompanying Fraud Reporting Service Guidance apply to licensed insurers.
Once in force, the rule will require reports within 45 days after the end of each calendar quarter for reportable events from the preceding quarter. If later evidence confirms fraud or makes an earlier report incomplete or inaccurate, the insurer must update the information.
The rule will require insurers to report to FSRA certain types of suspected and confirmed insurance fraud. FSRA is introducing this requirement in phases. In the first phase, the goal is to create a baseline for fraud-related indicators, understand fraud’s prevalence and identify industry-wide fraud trends. FSRA may allow insurers to view aggregated Fraud Reporting information in a future phase.
Key Points From FSRA’s Fraud Reporting Rule and Guidance
Who Has to Follow This Rule?
Once the rule takes effect, it will apply to insurers licensed to carry on auto insurance business in Ontario.
What Has to Be Reported?
Insurers must report certain information about suspected and confirmed auto insurance fraud once the rule takes effect, when they have reasonable grounds to believe insurance fraud occurred and have taken specific actions with respect to a policy or claim.
Examples of these actions include escalating the file, declining a claim, terminating coverage, closing the claim or paying out even when they have grounds to believe insurance fraud occurred.
Simply having grounds to suspect insurance fraud isn’t enough. Insurers must be able to say that specific facts suggest insurance fraud is more likely.
Insurers also cannot report suspected fraud solely because a policyholder has been with the insurer for a short amount of time.
What Type of Insurance Fraud Gets Reported?
All forms, including:
| Category in FSRA guidance | Example |
|---|---|
| Application or underwriting fraud | Intentionally hiding a driver, residence or mileage to obtain a lower premium |
| Fraudulent claims | Staging a collision, claiming unrelated damage or submitting false invoices |
| Service-provider fraud | Billing for treatment, towing or repairs that were not provided or were inflated |
| Insurance distribution fraud | Ghost brokering, fake proof of insurance or deliberate backdating |
| Internal insurer fraud | A worker creating a false claim or taking a kickback from a vendor |
Read More: See What to Do During a Car Accident Claim
How Often Will This Happen?
Reports are quarterly, due within 45 days of the end of a calendar quarter. Reports have to be updated when new information becomes available or may affect a report’s accuracy.
What Kind of Information Gets Reported?
Reports can include:
- Claim and loss information
- Vehicle information
- Provider or vendor information
- Payment or financial information
- Policy, claim or investigation status
Insurers can’t report more personal information than necessary and have to de-identify identifying information where possible. If sharing it is needed to identify insurance fraud or prevent future fraud, insurers have to explain why.
What Doesn’t Change?
The rule does not change insurance policies or guarantee a premium reduction.
Can You Report Suspected Auto Insurance Fraud?
Yes. You can report suspicious behaviour to your insurer or fill out FSRA’s fraud-tip form. If you believe a crime has occurred, report the matter to police.
Tips for Auto Insurance Policyholders
To help with insurance fraud prevention:
- Keep copies of reports, estimates, invoices, photos, bills, receipts and communications relating to a claim.
- Don’t sign blank documents.
- If there are unexpected claim delays, ask your insurer for an explanation in writing.
- If you disagree with your insurer’s coverage decision or believe it is not honouring your policy, ask about its formal complaint process and consider getting legal advice.