Florentinus Nugro Hardianto


The process of insurance claims begins when the insurer submits a claim to the insurance company until the decision stage of the court. In practice, a number of insurance claim processes face problems causing disputes. Badan Mediasi dan Arbitrase Asuransi Indonesia (BMAI) reported that during the period 2006-2016 there have been 618 cases of insurance disputes. This study aims to create a model of insurance cheating behavior based on game theory approach. The result of backward induction analysis yields eight propositions which explain that the cheating of insurance claim can be done either by the dishonest policy holder or the dishonest claim clerk.

Keywords: backward induction, game theory, insurance claim, insurance dispute, modelling

Full Text:



Akomea-Frimpong, I., Andoh, C., & Ofusu-Hene, E. D. (2016). Causes, effects and deterrence of insurance fraud: evidence from Ghana. Journal of Financial Crime, 23(4), 678-699.

Al-Rawashdeh, F., & Al-Singlawi, O. (2016). The Existence of fraud indicators in insurance industry: case of Jordan. International Journal of Economics and Financial Issues, 6(S5), 168-176.

Badan Mediasi dan Arbitrase Asuransi Indonesia (BMAI). (2006-2016). Rekapitulasi Sengketa yang masuk ke BMAI, periode 2006-2016. Retrieved from Badan Mediasi dan Arbitrase Asuransi:

Burlakov, G. (2010). Mathematical models in economics lecturer material. Retrieved from

Carmichael, F. (2005). A guide to game theory. Harlow: Pearson Education Limited.

Gibbons, R. (1992). Game theory for applied. New Jersey: Princeton University Press.

Heap, S. H., & Varoufakis, Y. (2004). Game Theory: A Critical Introduction. London: Routledge.

Karapiperis, D. (2014, October). Insurance fraud. Retrieved from The National Association of Insurance Commissioners (NAIC) and The Center for Insurance Policy and Research (CIPR) Newsletter:

Mendoza, R. L. (2016). Which moral hazard? health care reform under the affordable care act of 2010. Journal of Health Organization and Management, 30(4).

Rasmussen, E. (1994). Games and information: an introduction to game theory (2nd ed.). Cambridge: Blackwell Publishers Inc.

Samuelson, L. (2016). Game theory in economics and beyond. Journal of Economic Perspectives, 30(4), 107-130. doi:10.1257/jep.30.4.107

Varian, H. R. (2003). Intermediate microeconomics: a modern approach (6th ed.). New York: W. W. Norton & Company, Inc.



  • There are currently no refbacks.

View My Stats