Reason Analysis And Strategy Research Of Insurance Deception

Insurance system is a combination of millions of economic units and individuals inorder to evade risk and loss. This system integrally increases the endurance ofmicroeconomic main body and is benefit of the whole society and people. But theinsurance system advanced not so smoothly because of several reasons especially theexistence of insurance deception. Therefore, the study on countermeasure to preventinsurance deception is a crucial subject in insurance research. This paper thinks for thesake of solving this problem, we must analyze not only on explicit phenomenon butalso the economic theory.Insurance deception can be divided into three sorts;property insurance deception,liability insurance deception and life insurance deception. Property insurance deceptionhas nine modes, liability insurance deception has four modes, and life insurancedeception has three modes. In the paper there is concrete description.Insurance deception jeopardizes the whole society, insurance companies and otherhonest policy holders. This paper tries to hunt after its root by pondering the economictheory.This paper first educes the rational choice formula in economic sociology field:economic income + derived income>>low opportunity cost(related to current societyand resources possessed by individuals) + direct cost(insurance fee) + mental cost(theanxiety during and after deception period because of the sequence if failed). We usethis cost-income formula to analyze the deep cause of insurance deception and make aconclusion: we must increase the opportunity cost and mental cost, because of thecurrent situation, the latter is more significant.In order to find out which factors can affect the deceiver's mental cost, this paperutilizes the information-asymmetry theory to set up a simple game model which aimsat converse choice problem brought by insurance deception. We conclude;oncondition that we want to increase the deceiver's mental cost, we must increasedeceiver's S (punishment because of insurance deception) and B (probability ofdiscovery). This paper detailed illustrates a property insurance deception affair todemonstrate how to apply the theory into practice in daily life. Beside this, the paperalso put forward several countermeasures to increase mental cost and opportunity costin reality from macro-level.