In the United Kingdom, pet insurance fraud went from 420,000 in 2009 to 1,929,900 in 2010.This was in the aftermath of the financial crisis and the recession that followed.Basically, this means that pet owners were killing their pets on purpose in order to collect the insured amount often times with the help of a veterinarian.This provided some income in a time of financial distress.Fraud continues to be a major problem in the pet insurance industry.

From what two problems does this market suffer?What do you think could be done to diminish each of these problems?Give at least one idea for each.