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Insurance fraud can be classified by different criteria. There is a distinction between planned and opportunistic fraud. The former is distinguished by the total absence of the insured event, while it is characteristic of the latter that fraudulent circumstances are reported to get the highest compensation possible.   Planned and opportunistic fraud   In practice…

Information asymmetry Studying the phenomenon of insurance fraud, the concept of information asymmetry seems to be within its core. To be specific, it is the asymmetry of information between the parties of the insurance contract, i.e. the insurer, the insured and the policyholder, that is of relevance. The parties do not share the same level…

Why bother? Measuring and estimating the costs and extent of insurance fraud is paramount to raising our understanding of the insurance fraud phenomenon. Such estimates help insurers to prioritize problem areas and to efficiently allocate their resources in the fight against insurance fraud. Without reliable estimates the insurance industry cannot make credible statements to the…