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Why insurers are wrong about adverse selection

Thomas, R. Guy (2018) Why insurers are wrong about adverse selection. Laws, . ISSN 2075-471X. (doi:10.3390/laws7020013)

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Insurers typically argue that regulatory limits on their ability to use genetic tests will induce ‘adverse selection’; they say that this has disadvantages not just for insurers, but also for society as a whole. I argue that, even on its own terms, this argument is often flawed. From the viewpoint of society as a whole, not all adverse selection is adverse. Limits on genetic discrimination that induce the right amount of adverse selection (but not too much adverse selection) can increase ‘loss coverage’, and so make insurance work better for society as a whole.

Item Type: Article
DOI/Identification number: 10.3390/laws7020013
Uncontrolled keywords: insurance; adverse selection; loss coverage; genetic testing; genetic discrimination
Divisions: Faculties > Sciences > School of Mathematics Statistics and Actuarial Science > Actuarial Science
Depositing User: G. Thomas
Date Deposited: 16 Apr 2018 18:52 UTC
Last Modified: 29 May 2019 20:28 UTC
Resource URI: (The current URI for this page, for reference purposes)
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