Several things. The growing cost of auto insurance in Ontario had been an issue with consumers for several years, sparking the government to look closely at what was causing the problem. There was a KPMG report that found auto insurance fraud costs as much as $1.6 billion a year. Also, a report from the Anti-Fraud Task Force contained numerous recommendations, including that “…insurers should move aggressively to establish an organization that would pool and analyze claims data in order to identify potential cases of organized and premeditated fraud…”
In response to the Task Force’s recommendation, and the government’s ongoing mandate to reduce auto insurance rates, the industry moved forward with the implementation of CANATICS.