Centralizing Insurance Fraud Investigation&ast
M. Martin Boyer ()
The Geneva Risk and Insurance Review, 2000, vol. 25, issue 2, 159-178
The study of insurance fraud and its remedy is a hot topic of research, mainly because the problem of insurance fraud is so widespread. In the United States many state governments have setup agencies to combat fraud. These Insurance Fraud Bureaus (IFB) are typically established to gather information about potential fraudulent claims, and to advise prosecuting officers on the nature of each offense. This paper presents the conditions under which more fraud will be observed in an economy where an IFB conducts all audits than in an economy where each insurance company is responsible for its own investigation. Even if fraud increases, policyholders may be better off than in economy lacking an IFB. One unambiguous case where policyholders are always better is when the IFB conducts every investigation at a cost that is equal to the industry's average. The Geneva Papers on Risk and Insurance Theory (2000) 25, 159–178. doi:10.1023/A:1008766413327
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
http://www.palgrave-journals.com/grir/journal/v25/n2/pdf/grir2000128a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/grir/journal/v25/n2/full/grir2000128a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:genrir:v:25:y:2000:i:2:p:159-178
Ordering information: This journal article can be ordered from
Access Statistics for this article
The Geneva Risk and Insurance Review is currently edited by Michael Hoy and Nicolas Treich
More articles in The Geneva Risk and Insurance Review from Palgrave Macmillan, International Association for the Study of Insurance Economics (The Geneva Association) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().