How the Illegal Behavior Affects the Costs of Company or Insurance Policies - Research Proposal Example

RESEARCH PROPOSAL ON INSURANCE FRAUD Introduction In the recent years insurance fraud has been a major problem inthe country most so since the onset of the 21st century. This has always happened whenever there is an underwriting of insurance policies given that the policies are written taking different forms to suit the economic conditions of the time as well as the coverage available (Rutkowski). The term fraud connotes that the activity is illegal and they are subject to prosecution and sanctions in view of the threatened outcomes. Currently the view has been widened to cover most of the unwanted, unnecessary, and opportunistic manipulations of any given system that falls short of the criminal act (Zalma). The proposal will be directed towards describing the range of the moral hazards which relates to a derivation from asymmetric information with regards to claims and it extends on by proposing the procedures to be taken for the modeling of the process while enhancing the detection and deterrence of insurance fraud to the highest level possible (Leduc & Janet). Since corporations are ever growing in complexity and technology wise, there is a prospect that systems would be enhanced to help reduce the losses incurred by companies due to such insurance frauds (Tillman). Insurance laws and regulations are strengthened to close all the loopholes that fraudsters would use to defraud corporations. Purpose of the study The intent of this study is to major on the area or topic of insurance fraud. The approach will be geared towards identifying how the illegal behavior affects the costs of company or insurance policies. In the study we will identify these types of insurance frauds and look at the ways in which they are committed. In addition, we will look at the parties prone to committing the vice and the resultant costs incurred by businesses as a result of the insurance frauds. These are the main questions to respond to in this research process, they are subject to addition of more subsidiary questions in case they are needed to obtain more clarity on the subject of insurance fraud. According to "-Czech Republic Observes 27 Percent Hike in Insurance Frauds." the main focus will be on the topic of insurance fraud, its major causes and the causative agents, ultimately the prevention of the vice is also mandatory. From the review of literature gathered it is anticipated that the learner will gain much on this topical issue (Baumann). This is by the examination conducted on the more basic issues such as the nature and the impacts of insurance fraud and the costs that it subjects businesses and the general society towards. Therefore throughout this study a number of factors as outlined in the questions will be examined. The result should hence reflect the outcomes to the general objectives that the learner intended to find out presented through themes, policies and strong theoretical frameworks (Rutkowski). 1. Nature and Limitations of the Study The study will follow the qualitative approach which will involve the use of both primary and secondary methods with greater emphasis given to the secondary methods. The primary method will take the approach of interviews of a few selected corporate. The secondary approach will entail a one on one interaction of secondary resource materials like books, journals and articles with issues related to the topic. 2. Design of the Study This part of the qualitative proposal will entail the setting, research perspectives, study design as well as the procedures followed in conducting the study. a. Setting In the past 20 years an interest in understanding insurance fraud has intensified among the key players in the global arena. This has been propagated by the growing theft of the auto and the negligence of the healthcare industry. In most of the arena of the players, fraud has been an issue that demands an attention in the perspectives of travel, motor, home as well as business covers. Among the big eight industrialized countries; there was an experience where a problem of fraud could be detected with non specific response in place (Rutkowski). Predictions has it that the number of fraudulent insurance cases will reduce drastically. This is owed to the upgraded structures and the strict regulatory framework guiding the industry. This enable prospective environment attracts investors into the industry that has been avoided for long. Studies by the Insurance research council of the US and by the Insurance Bureau of Canada as well as many other bodies across Europe all in the name of finding solutions to insurance fraud. The main goal of this project will be to study around this issue and provide a lasting solution to the organizations and businesses that incur huge costs as a result of these fraudulent acts (Leduc & Janet). b. Research perspective A qualitative research perspective integrating both primary and secondary approaches is suggested for this project. Following the phenomenology conducted, the study would reveal an interaction of the impacts of the negative acts to the institutions that it is done (Seale). The books and relevant literature will oblige the researcher to adopt a sense of understanding on the issue. The qualitative researchers have provided a basis of the issues surrounding insurance fraud as very tangible (Bourhis). The data collected will be qualitative and not quantitative as per the word. They will express the exact attitudes, feelings, vocals and the personal touch of the individuals interviewed. The data collected through primary methods may consist of interview transcripts, field notes from observations, a wide variety of records and historical documents, and memoranda and they are treated to rigorous ongoing analysis. Three processes collection, coding, and analysis of data are blended throughout the study for a common outcome (Blessing, Lucienne, Amaresh and Amaresh). c. Study design & Procedures As has been mentioned above a qualitative approach accompanied by both primary and secondary views will be integrated into this research process (Seale). The heads of risk departments of identified companies will be interviewed and they are expected to give their opinions on what insurance frauds they have experienced in their companies, the people they identified to be behind such crimes and how they handled the situations (Downton). About 20 interviews will be enough with follow ups to be conducted if need be. Other information of insurance frauds will be seeked from books as the secondary sources. Thereafter all the information is gathered and a connection between the two approaches detected and connected with the proposal topic which is insurance fraud and the issues around it. Works Cited "-Czech Republic Observes 27 Percent Hike in Insurance Frauds." Global Banking News 13 Feb. 2013: 8-24. Print. Baumann, Linda A. Health care fraud and abuse: practical perspectives. Chicago, Ill.: American Bar Association, Health Law Section; 2007. Print. Blessing, Lucienne T. M., Lucienne T. M. Blessing, Amaresh Chakrabarti, and Amaresh Chakrabarti. DRM, a design research methodology. Dordrecht: Springer, 2009. Print. Bourhis, Ray. Insult to injury: insurance, fraud, and the big business of bad faith. San Francisco: Berrett-Koehler, 2005. Print. Downton, Peter. Design research. Melbourne: RMIT Pub., 2003. Print. Leduc, Janet L. Kaminski. Insurance. Hartford: Connecticut General Assembly, Office of Legislative Research, 2007. Print. Rutkowski, Therese. "Insurance Fraud: Convictions Rise; Technology Plays A Role.” Insurance Networking News: Executive Strategies for Technology Management 1 Feb. 2004: 23-30. Print. Seale, Clive. Qualitative research practice. London: SAGE, 2008. Print. Tillman, Robert. Global pirates: fraud in the offshore insurance industry. Boston, Mass.: Northeastern University Press, 2006. Print. Zalma, Barry. "Why insurance fraud succeeds. (For the Record).” Claims 1 Mar. 2013: 2-15. Print. Read More