×

Modelling different types of automobile insurance fraud behaviour in the Spanish market. (English) Zbl 0927.62108

Summary: From a microeconomic point of view, the control of insurance fraud requires a detailed knowledge of the insureds’ behaviour. We present discrete-choice models for fraud behaviour and we estimate the influence of the insured and claim characteristics on the probability of committing fraud. Data correspond to a Spanish sample. Correction for choice-based sampling is introduced in the estimation due to the oversampling of fraud claims. The structure of the Spanish automobile insurance market is also discussed. Our results differ according to the type of fraud behaviour that is under consideration.

MSC:

62P05 Applications of statistics to actuarial sciences and financial mathematics

Software:

LIMDEP
PDF BibTeX XML Cite
Full Text: DOI

References:

[1] Agresti, A., 1990. Categorical Data Analysis. Wiley, New York. · Zbl 0716.62001
[2] Ayuso, M., Guillen, M., 1999. Modelos de Detección de Fraude en el Seguro de Automóvil. Cuadernos Actuariales, in press.
[3] Belhadji, E.B., Dionne, G., 1997. Development of an Expert System for the Automatic Detection of Automobile Insurance Fraud. Working Paper 9706. École des Hautes Études Commerciales, Université de Montréal.
[4] Brockett, P.L., Xiaohua, X., Derrig, R.A., 1995. Using Kohonen’s Self-Organizing Feature Map to Uncover Automobile Bodily Injury Claims Fraud. Special Actuarial Seminar, Automobile Insurers Bureau, Boston, 25 January.
[5] CES, 1992. El Fraude en el Seguro de Automóviles. Centro de Estudios del Seguro, Madrid.
[6] Clarke, M, The control of insurance fraud. A comparative view, The british journal of criminology, 30, 1, 1-23, (1990)
[7] Cobo, P., 1993. Manual de Investigaciòn de Siniestros y Lucha contra el Fraude en el Seguro de Automóviles. Mapfre, Madrid.
[8] Cummins, J.D; Tennyson, S, Controlling automobile insurance costs, Journal of economic perspectives, 6, 2, 95-115, (1992)
[9] Cummins, J.D; Tennyson, S, Moral hazard in insurance claiming: evidence from automobile insurance, Journal of risk and uncertainty, 12, 1, 29-50, (1996)
[10] Derrig, R.A; Ostaszewski, K.M, Fuzzy techniques of pattern recognition in risk and claim classification, The journal of risk and insurance, 62, 3, 447-482, (1995)
[11] Dionne, G; Artis, M; Guillen, M, Count data models for a credit scoring system, Journal of empirical finance, 3, 3, 303-325, (1996)
[12] Dionne, G., Gibbens, A., St-Michel, P., 1993. An economic analysis of insurance fraud. In: Fortin, J.L., Girand, J.D. (Eds.), Insurance Fraud, University of Montreal Press.
[13] Greene, W.H., 1995. LIMDEP, Version 7.0, User’s Manual. Econometric Software, Inc., New York.
[14] Greene, W.H., 1997. Econometric Analysis. 3rd ed., Prentice-Hall, New York.
[15] Hausman, J; McFadden, D, Specification tests for the multinomial logit model, Econometrica, 52, 5, 1219-1240, (1984) · Zbl 0564.62095
[16] Hoyt, R.E, The effect of insurance fraud on the economic system, Journal of insurance regulation, 8, 3, 304-315, (1990)
[17] Koujianou, P, Product differentiation and oligopoly in international markets: the case of the US automobile industry, Econometrica, 63, 4, 891-951, (1995) · Zbl 0836.90036
[18] Maddala, G.S., 1983. Limited-dependent and Qualitative Variables in Econometrics. Econometric Society Monographs. Cambridge University Press, Cambridge. · Zbl 0527.62098
[19] Marter, S; Weisberg, H.I, Medical costs and automobile insurance: a report on bodily injury liability claims in massachusetts, Journal of insurance regulation, 9, 3, 381-422, (1991)
[20] McFadden, D., 1978. Modelling the choice of residential location. In: Karlquist, A., et al. (Eds), Spatial Interaction Theory and Planning Models, North-Holland, Amsterdam, pp. 75-96.
[21] McFadden, D.L., 1983. Qualitative response models. In: Griliches, Z., Intrilligator, M. (Eds), Handbook of Econometrics, vol. II, Chapter 24. Noth-Holland, Amsterdam, pp. 1395-1457.
[22] Picard, P, Auditing claims in the insurance market with fraud: the credibility issue, Journal of public economics, 63, 1, 27-56, (1996)
[23] UNESPA, 1995a. Estadı́stica de Seguros. Cifras de Avance e Informe Económico 1994. Aseguradora, UNESPA, Madrid.
[24] UNESPA, 1995b. Estadı́stica de Seguros Privados, 1985-1994. Aseguradora, UNESPA, Madrid.
[25] Weisberg, H.I; Derrig, R.A, Fraud and automobile insurance: A report on the baseline study of bodily injury claims in massachusetts, Journal of insurance regulation, 9, 4, 497-541, (1991)
[26] Weisberg, H.I., Derrig, R.A., 1993. Quantitative methods for detecting fraudulent automobile bodily injury claims. AIB Cost Containment/Fraud Filing, pp. 49-82.
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.