Current Trends in Insurance Fraud in Russia: Evidence from a Survey of Industry Experts

Timofeyev, Y. & Busalaeva, T. (2019). Current trends in insurance fraud in Russia: evidence from a survey of industry experts. Security Journal, 1-25. https://doi.org/10.1057/s41284-019-00209-2

27 Pages Posted: 18 Mar 2020

See all articles by Yuriy Timofeyev

Yuriy Timofeyev

National Research University Higher School of Economics

Tatiana Busalaeva

National Research University Higher School of Economics

Date Written: October 1, 2019

Abstract

This study aims to explore the current trends in fraud prevention in the insurance industry in Russia. Survey responses from 20 experts and professionals of the leading insurance companies in Moscow were collected. More than a half of them are former police officers who work at security or investigation departments. Survey data analysis was employed. According to the experts’ opinion, existing gaps in the legislation and difficulties in cooperation with the police are the main sources of inefficiency of fraud prevention strategies utilised by the Russian insurance companies. The respondents agreed that both insurers and fraudsters actively use new technologies. Fraudulent claims in compulsory third party liability motor insurance remain the most common activity among Russian criminals, although they quickly expand to health and property insurance. Typically, an insurance fraudster is a 34-year old male with a college/university degree who cooperates with an insurance broker in 42 percent of cases. Based on this, a set of recommendations aimed at increasing the efficiency of insurance fraud prevention was produced.

Keywords: Insurance fraud, experts’ survey, detection, prevention, fraudster’s profile, Russia

JEL Classification: G22, K42

Suggested Citation

Timofeyev, Yuriy and Busalaeva, Tatiana, Current Trends in Insurance Fraud in Russia: Evidence from a Survey of Industry Experts (October 1, 2019). Timofeyev, Y. & Busalaeva, T. (2019). Current trends in insurance fraud in Russia: evidence from a survey of industry experts. Security Journal, 1-25. https://doi.org/10.1057/s41284-019-00209-2, Available at SSRN: https://ssrn.com/abstract=3515201 or http://dx.doi.org/10.2139/ssrn.3515201

Yuriy Timofeyev (Contact Author)

National Research University Higher School of Economics ( email )

Moscow
Russia

Tatiana Busalaeva

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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