Abstract
Several characteristics of insurance fraud including its chronic nature justifies the need for identifying feasible proposals which can be expected to bring about significant impacts. Recent statistics show that insurance fraud is now consistently on the increase. However, insurance fraud is highly fragmented and each offence is not significant enough to elicit active interest among the public or interventions from the police. Three problems have been identified and diagnosed. These were a lack of awareness, an absence of a national leadership and also limited attention directed to insurance fraud by the investigating authorities. Based on these, three recommendations have been suggested. (1) Embarking on and developing a national initiative by central government, (2) Taking a dynamic concentration approach to send deterrent threats to potential fraudsters, and (3) Using big data technologies to detect clandestine activities by organised groups.
Highlights
Insurance fraud is an entrenched social issue in most countries and requires both proactive responses and prevention measures [1]
Defrauding insurance companies is not viewed as a great threat to those companies, not fitting into a category of serious crime. This is in part because premium increases to future policyholders due to insurance fraud happen over the long term so that people do not recognise this as a serious problem [12]
New types and cases of insurance fraud emerge over time, it has not been given the appropriate attention within society and the government
Summary
Insurance fraud is an entrenched social issue in most countries and requires both proactive responses and prevention measures [1]. Insurance fraud has usually been organised gradually with the emergence of specialised insurance fraud groups involving many people including gangs, hospitals and clinics, maintenance companies, and taxi drivers. As a summary of insurance fraud in Korea this paper examines first the current situation and circumstances regarding the issue by reviewing recent statistics and trends. It diagnoses associated problems and, third, provides policy options to deal with it. This is based on a greater awareness of related problems growing in scale and intensity
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