Insurance Fraud

Essay by corinutza87A, June 2009

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TABLE OF CONTENTSINTRODUCTION: Risk and insurance31. THEORETICAL ASPECTS REGARDING INSURANCE FRAUD41.1. What is insurance?41.2. What is insurance fraud?51.3. Types of insurance fraud71.3.1. Motor insurance fraud71.3.2. Property insurance fraud81.3.3. Life and health insurance fraud91.3.4. Marine insurance fraud101.4. Authors of insurance fraud131.4.1. Fraud done inside of insurance companies141.4.2. Fraud done by insurance clients151.4.3. Fraud done by other parties162. WAYS TO REDUCE FRAUDULENT INSURANCE ACTS182.1. Romanian legislation182.2. Insurance fraud prevention212.3. Insurance fraud detection232.4. Protection against insurance fraud273. FRAUD ON INTERNATIONAL AND ROMANIAN INSURANCE MARKET303.1. Fraud prejudices303.1.1. Fraud losses on the international market303.1.2. Fraud losses on the Romanian market323.2. Anti-fraud initiatives at national and international level333.2.1. Measures taken at national level333.2.2. Measures taken at international level344. CASE STUDY40CONCLUSIONS46REFERENCES48INTRODUCTION: Risk and insuranceAs the world we live in develops each day, the question of risk and theories as to how it should be understood and measured are at the forefront. We know that risks evolve, and that today's risks are different from those of the past.

The characteristics, frequency, intensity and, above all, the very nature of risks are changing radically.

If risks are becoming increasingly complex, it is because they are related to technological developments, new economic and social activities, and the aggregate effects of multiple factors. At the same time, risks have become more integrated, since a given event may have a series of consequences, giving rise to yet other risks. Risks are often interrelated, and sometimes the combined effect is greater than the sum of the individual parts.

The risks of today and tomorrow are also becoming more foreseeable as knowledge increases and we upgrade our statistical databases. This trend possesses a major challenge to the insurance industry and with it to insurance fraud which has nowadays become a more and more present phenomenon.

Insurance fraud is a subject not many want to...