Abstract: The behaviors of insurance fraud raise insurance threshold, affect the solvency of insurance company, having a profound negative impact on the healthy development of insurance industry. The causes of insurance fraud focus on the benefit, cost of law and probability of accountability, the paper has analyzed the insurance fraud of the policy holder in the viewpoint of law and economics, studied the main anti fraud provisions of the insurance law, considered that we should make clear provisions of insurance fraud, revise the questions of distorted law cost, incentive deviation, the low probability of law enforcement, to provide suggestions and countermeasures for our anti fraud legislation of insurance.

Key words: insurance fraud, the costs and benefits, risk and insurance, utility and probability