While trend forecasting can be challenging due to constant shifts in global and national trade policy, there are several indicators that Équité Association is watching closely. Economic decline due to increased unemployment and cost of living, international implications of tariffs and trade policies, as well as catastrophic climate events are all trends that emerge during challenging times.

During periods of economic uncertainty, we see key indicators that are associated with increasing crime.  As the cost of living and unemployment rise, we can expect to see more insurance crime. From a property and casualty insurance lens, Équité is keeping an eye on emerging trends, particularity in both auto and property crime.

With targeted tariffs on steel, aluminum and auto-related resources, Équité anticipates a rise in theft for automobile parts, and particularly, their illegal international export.  While it’s important to note that tariffs will have varying effects across provinces, Ontario and Quebec are especially tied to the auto sector supply chain.  As a result, we may see spikes in property and vehicle crimes in these provinces.

Identity Fraud in Vehicle Financing

Vehicle finance fraud occurs when a bad actor uses someone’s personal details (or creates a synthetic ID by combining information from multiple people) for the purpose of committing insurance crime. Once a criminal has personal information from victims, they may apply for auto loans to finance a vehicle, purchase an insurance policy to submit a falsified claim, or conceal their true identity to orchestrate a staged collision. Kickbacks might be shared across the involved organizations, from tow companies to auto repair shops to healthcare clinics, for an incident that never happened.

Find out more about identity theft and how Canadians can protect themselves here.

Organized Crime Debts in Vehicle Financing

Équité investigators have also seen instances of individuals who owe debt to organized crime using fraudulent vehicle financing as a mechanism to pay back that debt. The indebted individual will legitimately purchase a vehicle, give the new vehicle to the criminal network they owe money to, the vehicle will then be exported and the individual will place a fraudulent insurance claim saying the vehicle was stolen. The insurance payout will also go to pay off the debt and into the pockets of organized crime.

Investigators have seen a consistent pattern of money from fraudulent claims being used to fund organized crime networks. By joining together, our members are part of a leading national response in combating insurance crime and disrupting organized crime. Together, we can create safer and more equitable communities.

Équité offers its members the advantage of aggregated data, including fraud data modeling and enhanced reporting, complemented by the hands-on expertise of seasoned investigators. By bringing together the collective expertise of the Canadian P&C insurance industry, Équité is helping to create safer communities for honest, hardworking Canadians. Équité’s products and services are designed to respond to the rapidly growing problem of insurance crime, while recognizing the unique requirements of each of our members.

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