Multifactorial Genetic Disorders and Adverse Selection: Epidemiology Meets Economics

Tapadar, Pradip and Macdonald, Angus S. (2010) Multifactorial Genetic Disorders and Adverse Selection: Epidemiology Meets Economics. Journal of Risk and Insurance, 77 (1). pp. 155-182. ISSN 0022-4367. (The full text of this publication is not available from this repository)

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Official URL
http://dx.doi.org/10.1111/j.1539-6975.2009.01342.x

Abstract

The focus of genetics is shifting its contribution to common, complex disorders. New genetic risk factors will be discovered, which if undisclosed may allow adverse selection. However, this should happen only if low-risk individuals would reduce their expected utility by insuring at the average price. We explore this boundary, focusing on critical illness insurance and heart attack risk. Adverse selection is, in many cases, impossible. Otherwise, it appears only for lower risk aversion and smaller insured losses, or if the genetic risk is implausibly high. We find no strong evidence that adverse selection from this source is a threat.

Item Type: Article
Subjects: Q Science > QA Mathematics (inc Computing science)
Divisions: Faculties > Science Technology and Medical Studies > School of Mathematics Statistics and Actuarial Science > Actuarial Science
Depositing User: Pradip Tapadar
Date Deposited: 29 Jun 2011 14:04
Last Modified: 15 Apr 2014 11:05
Resource URI: http://kar.kent.ac.uk/id/eprint/24419 (The current URI for this page, for reference purposes)
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