How to Regulate the Insurance Fraud by the Principle of Utmost Good Faith

Insurance fraud,which seriously affects the healthy development of the insurance industry,not only violates the interests of the insurer,but also damages the interests of the honest insured.There are two major methods on anti-insurance fraud in current research.One is designing the optimal insurance policies or more random audit.The other one is establishing specialized anti-insurance fraud agencies.From the perspective of asymmetric information,this paper will adopt law and economics approach to analyze how to regulate the insurance fraud by the principle of utmost good faith in Insurance Law,then points out the shortcomings,so as to reduce the insurance jugglery.