Economic and Non-economic Losses Claim Effects on the Severity of Opportunistic Fraud in Auto Bodily Injury Compulsory Liability(BICL)Insurance:Evidence from China
Despite the increasing importance of opportunistic fraud activities in liability claims to insurers,relatively little research has been done to understand the causes and impacts of these activities.General damage awards are often argued to be the primary motivating factor for this type of opportunistic fraud.We test this hypothesis using a unique sample of closed claim lawsuit cases in automobile bodily injury compulsory liability insurance during 2007-2012 in China.Our results show that other economic and non-economic losses claim sub-items except medical expense are the significant detecting factors for the severity of opportunistic fraud,especially general damage as well as death or disability damage besides conventional wage loss.We still find the moral hazards of neglecting victim fault and focusing on the non-motorist or pedestrian role in auto accident caused by RTSL.Last,the severity of opportunistic fraud for sprains is not statistically significant,meaning higher possibility of opportunistic fraud for sprains does not imply larger severity of opportunistic fraud.Our findings provide additional insights on ex post moral hazard and have important policy implications to both insurers and regulators.
General damage Death or disability damage RTSL Sprains
ZHOU Jiantao AI Jing WANG Shanshan WANG Tianyang
School of Economics and Management,Beihang University,Beijing,China,100191 Department of Finance,University of Hawaii,Honolulu,HI 96822 USA Department of Finance and Real Estate,Colorado State University,Fort Collins,CO 80523 USA
国内会议
西安
英文
358-397
2016-07-27(万方平台首次上网日期,不代表论文的发表时间)