Next Article in Journal
Special Issue “Ageing Population Risks”
Previous Article in Journal
A Risk-Based Approach for Asset Allocation with A Defaultable Share
Article Menu
Issue 1 (March) cover image

Export Article

Open AccessArticle
Risks 2018, 6(1), 15; https://doi.org/10.3390/risks6010015

Preliminary Investigations for Better Monitoring: Learning in Repeated Insurance Audits

Département d’Economie, École Polytechnique, Route de Saclay, Palaiseau 91128, France
*
Author to whom correspondence should be addressed.
Received: 5 February 2018 / Revised: 22 February 2018 / Accepted: 26 February 2018 / Published: 28 February 2018
Full-Text   |   PDF [1340 KB, uploaded 2 March 2018]   |  

Abstract

Audit mechanisms frequently take place in the context of repeated relationships between auditor and auditee. This paper focuses attention on the insurance fraud problem in a setting where insurers repeatedly verify claims satisfied by service providers (e.g., affiliated car repairers or members of managed care networks). We highlight a learning bias that leads insurers to over-audit service providers at the beginning of their relationship. The paper builds a bridge between the literature on optimal audit in insurance and the exploitation/exploration trade-off in multi-armed bandit problems. View Full-Text
Keywords: ex-post moral hazard; insurance fraud; optimal auditing; learning ex-post moral hazard; insurance fraud; optimal auditing; learning
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Aboutajdine, R.; Picard, P. Preliminary Investigations for Better Monitoring: Learning in Repeated Insurance Audits. Risks 2018, 6, 15.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Risks EISSN 2227-9091 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top