A comparative analysis of decision trees vis-à-vis other computational data mining techniques in automotive insurance fraud detection

The development and application of computational data mining techniques in financial fraud detection and business failure prediction has become a popular cross-disciplinary research area in recent times involving financial economists, forensic accountants and computational modellers. Some of the computational techniques popularly used in the context of - financial fraud detection and business failure prediction can also be effectively applied in the detection of fraudulent insurance claims and therefore, can be of immense practical value to the insurance industry. We provide a comparative analysis of prediction performance of a battery of data mining techniques using real-life automotive insurance fraud data. While the data we have used in our paper is US-based, the computational techniques we have tested can be adapted and generally applied to detect similar insurance frauds in other countries as well where an organized automotive insurance industry exists.

Insuring for a crisis: deposit insurance and the GFC, the Australian and New Zealand experience

Deposit insurance schemes were an important element in policy responses to the global financial crisis (GFC). There has been considerable debate about the nature and efficacy of such policy measures in alleviating the fallout from financial crises. The GFC highlighted problems associated with deposit insurance schemes including moral hazard, coverage limits, co-insurance, cross border issues and market distortions. Despite these shortcomings, deposit insurance schemes were able to ameliorate the financial panic experienced and reduce contagion. This paper evaluates the Australian and New Zealand experience with deposit insurance introduced in response to the GFC, and compares this to the OECD experience. It reflects on the performance of deposit insurance schemes considered against the attributes of good policy design, and evaluates the specific problems and strengths encountered during the GFC.

Private Health Insurance Status and Utilisation of Dental Services in Australia

This article focuses on the relationship between private insurance status and dental service utilisation in Australia using data between 1995 and 2001. This article employs joint maximum likelihood to estimate models of time since last dental visit treating private ancillary health insurance (PAHI) as endogenous. The sensitivity of results to the choice between two different but related types of instrumental variables is examined. We find robust evidence in both 1995 and 2001 that individuals with a PAHI policy make significantly more frequent dental consultations relative to those without such coverage. A comparison of the 1995 and 2001 results, however, suggests that there has been an increasing role of PAHI in terms of the frequency of dental consultations over time. This seems intuitive given the trends in the price of unsubsidised private dental consultations. In terms of policy, our results suggest that while government measures to increase private health insurance coverage in Australia have been successful to a significant degree, that success may have come at some cost in terms of socio-economic inequality as the privately insured are provided much better access to care and financial protection.

Was monochloramine responsible for widespread lettuce crop failures at a major recycled water irrigation scheme?

In 2008, vegetable growers observed stunted lettuce plants showing signs of chlorosis and wilting. It was suspected that monochloramine in the recycled water used for irrigation, in combination with extreme environmental conditions (high irrigation water salinity and extreme heat), was responsible for these crop failures. A series of glasshouse studies was conducted to evaluate the impact of monochloramine concentration alone on iceberg lettuce seedlings, as well as in combination with high salinity and hot ambient temperatures. Monochloramine concentrations up to 9 and 15 mg L−1 Cl2 for continuous and initial irrigation only, respectively, did not affect the weight of iceberg lettuce heads (p > 0.05), while the combination of monochloramine (4–5 mg L−1 Cl2) and salinity (3,500 μS cm−1) did not significantly affect harvest measurements (p > 0.05). We therefore conclude that it is unlikely that monochloramine was responsible for the observed crop failures.

Access to social insurance in urban China: a comparative study of rural-urban and urban-urban migrants in Beijing

 Since 1958 the hukou (household registration) system has assigned Chinese citizens either a rural or urban status. Some studies argue that the rural-to-urban migrants in China who do not have urban hukou are not entitled to urban social insurance schemes, due to institutional discrimination, which applies differing treatment to urban and rural hukou (chengxiang fenge). Although rural-urban migrants participate less in the social insurance system than their counterparts with urban hukou, a closer examination of recent policy developments shows that migrants actually do have the legal right to access the system. This implies that discrimination between rural and urban workers has been declining, and distinctions based on household registration status are less able to explain China's current urban transition. This paper provides a new way of examining Chinese migrants' social insurance participation, by adopting a framework that includes both rural-to-urban migrants and urban-to-urban migrants, which are an important, but less studied, migrant group. Among our key findings are that urban migrants are more likely to sign a labour contract than rural migrants; urban migrants have higher participation rates in social insurance than rural migrants; having a labour contract has a greater impact than hukou status in determining whether Beijing's floating population accesses social insurance; and urban migrants who have signed a labour contract have higher participation rates in social insurance than either rural migrants or urban migrants without a labour contract. © 2013 Elsevier Ltd.

Which rural migrants receive social insurance in Chinese cities? Evidence from Jiangsu survey data

This article draws on a survey of internal migrant workers in China's Jiangsu province to shed light on the characteristics of migrant workers who receive social insurance and explain why some migrants take up social insurance while others do not. Of the factors which potentially explain which migrants receive social insurance, gender, past earnings, ties to the city to which the migrant had moved, the ownership type of the enterprise in which the migrant works and residential registration status are all found to be statistically significant predictors. The article concludes with the suggestion that the high level of scepticism with respect to social protection that has been reported as being manifest among migrants is justified. There is little likelihood the majority of migrant workers who have moved to China's towns and cities will be able to access the social insurance benefits traditionally available to those with urban registration. Copyright © 2005 SAGE Publications London.