Author:

Keywords:

costly state verification, automobile insurance, workers-compensation, moral hazard, claims, classification, collusion, contracts, deterrence, injuries, Social Sciences, Business, Finance, Business & Economics, AUTOMOBILE INSURANCE, WORKERS-COMPENSATION, CLAIMS, CONTRACTS, MODEL, 1402 Applied Economics, 1502 Banking, Finance and Investment, Finance, 3502 Banking, finance and investment, 3801 Applied economics

Abstract:

This article is devoted to the phenomenon of insurance fraud. We start by surveying the various forms of insurance fraud as well as its extent and cost. We proceed to analyse the problem as the product of motivation and opportunity, and address the complexities of fraud control. Finally, we provide a high-level over-view of current anti-fraud activity.