Schneider, Annika; Khemka, Gaurav; Pitt, David; Zhang, Colin - 2023
Moral hazard risk in insurance describes the possibility of fraudulent policyholder behaviour, resulting in losses … which are hard to predict and quantify. For disability income insurance (DII), moral hazard may be exacerbated during … periods of high unemployment. In this paper, we first propose a weighted regression approach to quantify the extent of moral …