Research On Vehicle Insurance Anti-Fraud In China

Economic development has resulted in vast increases in the standard of living, resulting in greater vehicle manufacture and use. As a result, the auto insurance industry has been recovered since the 1980s and grown very quickly. Auto insurance has taken a large proportion of the whole property insurance premium. The solvency and stability of property insurance companies has a direct relationship with auto insurance. An enlarging of the size of auto insurance premiums, has meant companies profits have fallen. Auto insurance fraud is a reason of this phenomenon. This paper uses Game Theory and the experience of developed countries to analyse the reason why auto insurance fraud has increased. The final sections conclude by offering some suggestions to solve the problem.The structure of the paper is as follows:The first chapter points out auto insurance fraud has been an obstacle for the insurance industry. It then introduces the available features and methods of fraud from two different points of view. There are also some anti-fraud methods have been used by insurance companies, insurance industry associations, supervising administrations.The Second chapter, analyses the source of fraud based on theory. The paper establishes a model which assumes normal claims such as extra gain, fraud cost, anti-fraud cost as the main parameters to illustrate the cause of auto fraud. Also fraud is considered as a market behavior which can be analyzed by demand-supply principles. Psychology is used in this paper at the same time.The third chapter, looks at comparative studies from developed countries. For having a longer history of insurance operation, developed countries have a lot more experience which are not applicable to the case of China. Establishing a special anti-fraud section, using the mathematics models, enhancing the force of law are important points this paper emphasizes.The fourth chapter, puts forward a few suggestions to perfect auto insurance. The suggestions contain both macro-suggestions and micro-suggestions, which include perfecting the management system, changing the supervising authorities, establishing a information share system and so on.Above all, the paper tries to avoid inanity of raw theory, using practical experience of the author.