An Empirical Analysis of the Characteristics and Detection of Life Insurance Frauds

The mounting frequency of life insurance frauds is driving up costs of insurance companies and premiums of policyholders. Investigations were carried out to assess the fraud scenario in the Indian life insurance companies, the potential risk exposure, the impact of growing events of frauds, and company's practices to counteract the frauds. This study examines the factors which aid in implementing an effective fraud control policy and also whether insurers' artillery against life insurance frauds is used effectively. Numerous variables are tested such as - characteristics of perpetrators (fraudsters), schemes employed for insurance frauds, and types of detection and investigation techniques used for comparison of the characteristics of insurer fraud with those of insurance fraud. A detailed survey of 50 employees of different life insurance companies provides the database; techniques such as chi square statistics, paired sample T test, cross tabulation, frequency distribution were used to measure test of independence, test of significant differences and occurrence of events