The article proposes an expert system for detection, and subsequent investigation, of groups of collaborating automobile insurance fraudsters. The system is described and examined in great detail, several technical difficulties in detecting fraud are also considered, for it to be applicable in practice. Opposed to many other approaches, the system uses networks for representation of data. Netwo...

Many insurance-related decisions appear, at first glance, to be suboptimal. For example, many people pay added premiums that seem excessive to obtain automobile collision insurance with a low deductible. To make matters worse, some decide not to file a claim following a small accident whose cost could largely be reimbursed via this low deductible1: they fear that a claim would lead to increased...

Source of earnings analysis has long been a staple of life insurance policy pricing and profitability monitoring. It has grown in importance with the advent of universal life insurance and of similar contracts with non-guaranteed benefits or charges. SFAS 97 now mandates the use of source of earnings analysis for GAAP reporting of universal life-type contracts. Source of earnings analysis is eq...

A recently published report of a nationwide survey 1 showed family medical costs in relation to ownership of voluntary health insurance. The present study, based on surveys of a smaller group of families in three areas, permits a similar examination of the effect of health insurance on family spending for medical care. The findings corroborate those of the national study in many respects. In ad...

V OTER APPROVAL OF CALIFORNIA’S PROPOSITION 103 in 1988 signaled strong consumer rejection of the current automobile insurance pricing system. Nevertheless, insurers are refusing to admit that this stinging rebuke indicates a need for fundamental change. Shortly after the election, Terr); Tyrpin, assistant gener.11 counsel for the National Association of Independent Insurers (NAII), protested t...

Many studies show that asymmetric information exists in insurance markets, yet there is little consensus on the e↵ectiveness of interventions in these markets. This article provides empirical evidence that improving information about risk is not always welfare-improving. I show how the theoretical e↵ect of risk-rating can depend on whether the market is adverselyor advantageously-selected. I th...

The goal of this article is to test whether the threat of regulating (or of more stringent regulation of) automobile liability insurance as portrayed in the popular and industry press induces insurers to change the way they price their policies. More to the point, using quarterly state data from 1984 to 1993, the author attempts to determine whether insurance companies reduced premium increases...