Why Insurers Are Wrong about Adverse Selection
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 o...
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| Format: | Article |
| Language: | English |
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MDPI AG
2018-04-01
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| Series: | Laws |
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| Online Access: | http://www.mdpi.com/2075-471X/7/2/13 |
| _version_ | 1798005798743310336 |
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| author | R. Guy Thomas |
| author_facet | R. Guy Thomas |
| author_sort | R. Guy Thomas |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-04-11T12:45:51Z |
| format | Article |
| id | doaj.art-f2399243579a4d3cb5f58d7766ab3275 |
| institution | Directory Open Access Journal |
| issn | 2075-471X |
| language | English |
| last_indexed | 2024-04-11T12:45:51Z |
| publishDate | 2018-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Laws |
| spelling | doaj.art-f2399243579a4d3cb5f58d7766ab32752022-12-22T04:23:23ZengMDPI AGLaws2075-471X2018-04-01721310.3390/laws7020013laws7020013Why Insurers Are Wrong about Adverse SelectionR. Guy Thomas0School of Mathematics, Statistics and Actuarial Science, University of Kent, Canterbury CT2 7FS, UKInsurers 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.http://www.mdpi.com/2075-471X/7/2/13insuranceadverse selectionloss coveragegenetic testinggenetic discrimination |
| spellingShingle | R. Guy Thomas Why Insurers Are Wrong about Adverse Selection Laws insurance adverse selection loss coverage genetic testing genetic discrimination |
| title | Why Insurers Are Wrong about Adverse Selection |
| title_full | Why Insurers Are Wrong about Adverse Selection |
| title_fullStr | Why Insurers Are Wrong about Adverse Selection |
| title_full_unstemmed | Why Insurers Are Wrong about Adverse Selection |
| title_short | Why Insurers Are Wrong about Adverse Selection |
| title_sort | why insurers are wrong about adverse selection |
| topic | insurance adverse selection loss coverage genetic testing genetic discrimination |
| url | http://www.mdpi.com/2075-471X/7/2/13 |
| work_keys_str_mv | AT rguythomas whyinsurersarewrongaboutadverseselection |