Conventional theory for private information of adverse selection predicts a positive correlation between insurance … coverage and ex post risk. This paper shows the opposite in the life insurance market despite the clear evidence of private … information. The paper discusses how the private information on insurance preference offsets the effect of the private information …

This paper studies regulated health insurance markets known as exchanges, motivated by their inclusion in the … competitive insurance markets to predict outcomes under different regulations that govern insurers' ability to use health status …

We use a large data set of deductible choices in auto insurance contracts to estimate the distribution of risk … results for counterfactual exercises that assess the profitability of insurance contracts under various assumptions. …

This paper examines the standard test for asymmetric information in insurance markets: that its presence will result in … a positive correlation between insurance coverage and risk occurrence. We show empirically that while there is no … evidence of this positive correlation in the long-term care insurance market, asymmetric information still exists. We use …

We provide strong evidence of advantageous selection in the Medigap insurance market, and analyze its sources. Using …

observables,' attributes of individual insurance buyers that are correlated both with subsequent claims experience and with … insurance demand but that insurance companies did not use to set insurance prices. Unlike the widely-used positive correlation … test for asymmetric information, which searches for a positive correlation between insurance demand and risk experience …

This paper presents new evidence on the importance of adverse selection in insurance markets. We use a unique data set …, consisting of all annuity policies sold by a large U.K. insurance company since the early 1980s, to analyze mortality differences … asymmetric information in insurance markets. We find no evidence of mortality differences, however, across annuities of different …

This paper investigates consumer switching costs in the context of health insurance markets, where adverse selection is … at a large firm where we also observe individual-level panel data on health insurance choices and medical claims. We … toward better decisions by reducing switching costs. This policy increases welfare in a naive setting where insurance plan …