Economic Analysis And Strategy Research Of Insurance Fraud

Insurance industry, whose wealthy development means great significance to a country's social stability and economic development, is one of the backbone industries of modern finance. As the same time insurance fraud is in upward trend and has been a hunting nightmare to insurance industry, In light of significant asymmetric information in insurance market, combining the research results of game of theory and asymmetric information, On the basis of summarization on domestic and overseas theories about insurance fraud, this paper studies game model of insurance fraud using a costly state verification approach.Obtain from the literature, Western scholars' premise about studying the issue of insurance fraud is based on the assumption that in the general insurance market, all policyholders are trend to misreport the true state of the insurance accident, when the insurance company investigate the policyholders' claim, they know the true state of the insurance accident. I broaden and deepen the assumption ,and is that in the insurance economy where there two types of policyholders ,the truths, who always report the true state of the insurance accident, and the Dares, who dare misreport the true state of the insurance accident ,the study shows that no separating contract exists. Then in the pooling contract, if the proportion of Dares is large enough, the loss is overcompensated, if the proportion of Dares is small, loss is undercompensated. Finally, by Anglicizing an incomplete-information dynamic game model, the paper obtains the relationship between the amount of fraud and audit cost, fraud cost, the paper explains the reason of raging fraud, and raises some suggestions about prevention reduces fraud.