The Problem of Insurance Fraud

Fraud is common in various aspects of society, and one of the most common types of fraud is insurance fraud. There is a possibility that a fraud may occur in a person (including a doctor or a patient) using insurance from an insurance company. Fraud often costs around $ 30 billion per year, which is a high cost for the amount fraudsters usually receive from insurance (O'Rourke, 2003). For example, in 1995 alone, 1 trillion dollars was spent on medical care and 10-15% was used for medical insurance fraud (Skeen, 2003).

There is no simple solution to the insurance fraud problem. Consumers, legislators, regulators, and insurance companies must cooperate for a long time to prevent insurance fraud or create an environment that can be easily detected in the event of insurance fraud. The first step in this process is to deepen the basic understanding of problems and potential solutions. This is the purpose of this document. Insurance company executives and employees are also committing serious fraud. Employees can fraud insurance companies by accepting bribes or kickbacks from body shops or doctors to confirm false claims. Another example is that the insurance agency does not transfer insurance policyholder premiums to insurance companies. The agent collects insurance premiums and expects policyholders not to charge

We address the problem of distributed billing management. Users prefer to complain about insurance company claim management, but the level of insurance fraud innovation is merely insane and is a real problem to be solved. After all, insurance is an industry that develops automotive laser measurements to distinguish between hail and golf models. Parametric insurance is not a big deal as there are rumors that someone intentionally postponed the flight to join the flight insurance of the encrypted parameters and receive the flight refund.

Insurance money fraud brings significant loss to insurance companies and sincere policyholders. According to the Insurance Institute, Korea recorded a $ 4.5 billion insurance fraud. The world insurance fraud loss was $ 792 billion. Insurance money fraud occurs because there is a possibility that the patient may tamper with the evidence file during the process of retrieving the document from the medical institution and submitting the insurance claim application form. Block chains prevent this file from being forged. Since all changes to the original data must be recorded in the block chain network, the data generated by the block chain is 100% reliable and reliable. When handling medical data using block chain technology, insurance money fraud is greatly reduced