Aviva, one of Canada’s leading insurance companies, has issued a warning to consumers about the rise of scam brokers selling fake insurance policies. This fraudulent activity, known as “ghost broking,” has become a growing concern in the insurance industry.
Ghost broking involves individuals or companies posing as legitimate insurance brokers and selling fake insurance policies to unsuspecting customers. These policies often come at a lower cost, making them attractive to those looking for a good deal. However, these policies are not valid and do not provide any coverage in the event of a claim.
Aviva has reported an increase in the number of cases involving ghost broking, with some victims losing thousands of dollars in premiums and facing financial losses when they discover their policies are fake. The company is urging consumers to be vigilant and to only purchase insurance from reputable and licensed brokers.
In a statement, Aviva’s Chief Risk Officer, Jason Storah, emphasized the importance of verifying the legitimacy of insurance brokers before purchasing a policy. He also advised consumers to be wary of brokers who offer policies at significantly lower prices than the market average.
Aviva has also provided tips for consumers to protect themselves from falling victim to ghost broking. These include checking the broker’s credentials with the provincial insurance regulator, asking for a written policy document, and verifying the policy details with the insurance company directly.
The Insurance Bureau of Canada (IBC) has also issued a warning about ghost broking, stating that it is a serious crime that can result in fines and even jail time for those involved. The IBC advises consumers to be cautious and to report any suspicious activity to the authorities.
In conclusion, Aviva’s warning serves as a reminder for consumers to be vigilant when purchasing insurance and to always verify the legitimacy of brokers and policies. By taking these precautions, consumers can protect themselves from falling victim to ghost broking and ensure they have valid insurance coverage in the event of a claim.
