IBC urges insurers to talk to each other to prevent organized crime

Insurance companies must recognize ‘red flags’ indicating the presence of organized crime and better co-ordinate communications between them when such signs arise, according to IBC investigator Kathy Metzger.
Insurers must be vigilant in preventing organized crime, Metzger told delegates attending the National Association of Subrogation Professionals’ Canadian Chapter’s training and education seminar.
The seminar was held at the Novotel Toronto Centre on Nov. 12
Part of being vigilant includes being aware that a company’s one “problem file” may in fact be part of something bigger, such as an organized crime ring.
Metzger went on to note that insurance companies must communicate with each other and provide data when they suspect a file may be the tip of an iceberg.
She pointed out that IBC has a database of Web claims from insurance companies that are populated by date.
Companies must understand the red flags. If there is a problem file and it is part of an organized crime ring there will be indicators.
“Know what to look for,” she said.
Everyone is afraid of PIPEDA, she said. However, the important thing to know is that if there are reasonable grounds to believe that there has been a contravention of law or a breach of contract – a contract being the insurance policy – then a company is able to communicate that information with an investigative body.
“ Know that and talk to each other, because that’s the only way we are going to combat any of it is to work as a group together,” she concluded.