Loss Coverage: Why Insurance Works Better with Some Adverse Selection

Thomas, R. Guy (2017) Loss Coverage: Why Insurance Works Better with Some Adverse Selection. Cambridge University Press, Cambridge, UK, 274 pp. ISBN 9781107495906. E-ISBN 9781108158824. (doi:https://doi.org/10.1017/9781316178843) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

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Official URL
https://doi.org/10.1017/9781316178843

Abstract

Most academic and policy commentary represents adverse selection as a severe problem in insurance, which should always be deprecated, avoided or minimised. This book gives a contrary view. It details the exaggeration of adverse selection in insurers' rhetoric and insurance economics, and presents evidence that in many insurance markets, adverse selection is weaker than most commentators suggest. A novel arithmetical argument shows that from a public policy perspective, 'weak' adverse selection can be a good thing. This is because a degree of adverse selection is needed to maximise 'loss coverage', the expected fraction of the population's losses which is compensated by insurance. This book will be valuable for those interested in public policy arguments about insurance and discrimination: academics (in economics, law and social policy), policymakers, actuaries, underwriters, disability activists, geneticists and other medical professionals.

Item Type: Book
Uncontrolled keywords: Loss coverage; adverse selection; insurance; insurance rhetoric; insurance economics; moral hazard; big data
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: Faculties > Sciences > School of Mathematics Statistics and Actuarial Science
Faculties > Sciences > School of Mathematics Statistics and Actuarial Science > Actuarial Science
Depositing User: R.G. Thomas
Date Deposited: 21 May 2017 01:33 UTC
Last Modified: 23 May 2017 08:34 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/61806 (The current URI for this page, for reference purposes)
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