Psychoanalytic perspective or approach is the theory about personality which was developed by Sigmund Freud. It can be explained as an approach or perspective which focused on the unconscious mind. this means that most behaviors are based or determined by past experiences that were stored in the unconscious mind.
That is, the experience of the childhood determines the behavior exhibited later in life.
In this case,the therapist is suggesting that the disorder developed by John has been through the past experiences that have been stored in his unconscious mind. This can be from the childhood, or from many years back.
Should Elton's deception be discovered, he could be charged with Insurance Fraud, for breaking the conditions and the terms of the car insurance contract he agreed upon with the company. The fact that he sought opportunity for profit, by reportingfalsely, he broke the Principle of Utmost Good Faith, which requires the complete information from the person getting the insurance.