INSURANCE FRAUD IN MODERN CONDITIONS OF INSURANCE MARKET

Abstract

Thesis captures a complex study on theory and practice of insurance fraud in modern conditions of insurance market in Ukraine and the most developed countries, such as USA, Canada, Germany and England.

The major task of this study is to identify the main causes that spread insurance fraud in Ukraine and use the experience of developed countries to fight this economic phenomenon.

In recent years, researchers have become increasingly interested in insurance fraud and its impact on the economy of the country. The latest studies show the main components of insurance fraud. The essence of fraudulence in the insurance industry was deeply studied and it shows that motives of committing such fraud can vary from making a good profit on it to illegal financial schemes.

Further investigation shows us that as insurance market has different stages of development, fraudulence in the insurance industry has its own stages that go from a little impact on the country’s economy to its globalization on the international insurance markets. Each stage has a particular set of methods to fight against insurance fraud and its consequences.

The following data indicates the structure of insurance fraud in developed countries and in Ukraine, which makes us say that there is clear connection between developing stage of the market and the structure of fraudulence in different areas of insurance industry.

In conclusion, the main solutions to prevent the growth of negative effects on the economy in terms of Fight against insurance fraud in Ukraine has been proved. Such solutions include necessity of consolidating efforts of the government, insurance companies and their associations in developing a single database of fraudsters.