Behavioural economics offers a fascinating possibility for tackling the problem of insurance fraud. Most insurance fraud isn’t carried out by weathered criminals, it’s conducted by ordinary people who exaggerate on their claim forms. Although it might be viewed as a small slice of the total claim amount, this adds up to a major problem for insurers and customers alike, for each year the cost translates into seemingly ever-increasing premiums.
There is a growing evidence-base for the power of context in influencing honesty, so we wanted to explore how these psychological principles could be applied to enhance the effectiveness of customer communications.
Via Ahmet Murat Seferoglu