Game Analysis Of Vehicle Insurance Fraud

From the standpoint of the three kinds of participators in the process of vehicle insurance operation, this paper introduces theories about insurance fraud, in which asymmetric information and game theory are applied to roundly research the contentions of inner benefits in vehicle insurance fraud. As a result, this paper educes innovation conclusion, thus promotes some valuable suggestions against vehicle insurance fraud.There are two parts in this paper, which are preface and text. The preface is to stress the backgrounds and bearing of this paper, it simply introduces the contents and innovations. On the basis of summarization on domestic and overseas theories about insurance fraud, this paper establishes the contents to be researched and research means.The text includes four chapters. The first chapter is about insurance fraud, game theory and asymmetric information. As the theoretic basis, the chapter expounds fundamental knowledge about insurance fraud, including the concepts, characteristics and inner risk factors. Vehicle insurance fraud is classified to be policyholder fraud, agent fraud, and insurer fraud. By qualitative explanation of the motivation and forms, the chapter points out that asymmetric information in the vehicle insurance market is an important factor that results in fraud.The second chapter, by establishing an incomplete-information dynamic game model, obtains the numeral relationship between the critical number of fraud probability and fraud earning, fraud cost, penalty. Accordingly, the paper explains the reason of raging fraud, and raises some suggestions such as improving insurance contracts, enhancing claim and aggravating penalty etc.In the third chapter, by analysis of the game between the agent and the insurer in the operation, the chapter indicates that the most factor in agent fraud is the unreasonability of the incentive system. Base on two kinds of model, the chapter includes that the insurer should keep appropriate suspect to agent, and contact agent's benefits with the policy's quality.The fourth chapter is about insurer fraud, which results in market failure and deficient solvency. Utmost good faith principle is the most fundamental principle to construct insurance system. It restricts the insurer as well as the policyholder. The restriction of the principle for the insurer is to be realized by insurance law and the supervision of government. By game analysis of insurer supervision, the paper concludes that to conserve cost, the regulators should establish and improve information publish system and grading system etc.