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Full-Text Articles in Insurance Law
Does Small Group Health Insurance Deliver Group Benefits: An Argument In Favor Of Allowing The Small Group Market To Die, John Aloysius Cogan, Jr.
Does Small Group Health Insurance Deliver Group Benefits: An Argument In Favor Of Allowing The Small Group Market To Die, John Aloysius Cogan, Jr.
Faculty Articles and Papers
The small group health insurance market is failing. Today, fewer than one-third of small firms now offer health insurance and the number of people covered by small group insurance continues to drop. These problems invite the obvious question: What should be done about the small group market? Past scholarship on the small group market has largely focused on documenting the market's problems, evaluating the effectiveness of prior reform efforts, and proposing regulatory changes to stabilize the market. This Article takes a different approach to the small group problem by asking a previously unasked question: Does the small group market deliver …
Information & Equilibrium In Insurance Markets With Big Data, Peter Siegelman
Information & Equilibrium In Insurance Markets With Big Data, Peter Siegelman
Faculty Articles and Papers
Asymmetric information makes the behavior of insurance markets very difficult to predict. But this Article argues that the increasing use of Big Data by insurers will not result in forecasts of loss that are so accurate that they eliminate uncertainty, and with it, the possibility of insurance. Big Data techniques might lead to a 'flip" in informational asymmetry, resulting in a situation in which insurers know more about their customers than the latter know about themselves. But the effects of such a development could actually be benign. Finally, the Article considers the potential for Big (or at least, More) Data …
Tontines For The Invincibles: Enticing Low Risks Into The Health-Insurance Pool With An Idea From Insurance History And Behavioral Economics, Peter Siegelman, Tom Baker
Tontines For The Invincibles: Enticing Low Risks Into The Health-Insurance Pool With An Idea From Insurance History And Behavioral Economics, Peter Siegelman, Tom Baker
Faculty Articles and Papers
Over one-third of the uninsured adults in the U.S. below retirement age are between nineteen and twenty-nine years old. Young adults, especially men, often go without insurance, even when buying it is mandatory and sometimes even when it is a low-cost employment benefit. This Article proposes a new form of health insurance targeted at this group, the "young invincibles"-those who (wrongly) believe that they do not need health insurance because they will not get sick. Our proposal offers a cash bonus to those who turn out to be right in their belief that they did not really need health insurance. …
Adverse Selection In Insurance Markets: An Exaggerated Threat, Peter Siegelman
Adverse Selection In Insurance Markets: An Exaggerated Threat, Peter Siegelman
Faculty Articles and Papers
The thesis of this Essay is that although theory demonstrates that adverse selection can occur, and some instances have certainly been documented, neither the theoretical models nor the empirical studies provide much support for its widespread importance in insurance markets. The nature of selection pressures turns out to be vastly more complicated than the rhetoric of courts and academic commentators would suggest. And while the economic theory of adverse selection in insurance markets has become enormously sophisticated, much of it is devoted to rarified analysis of the nature and existence of equilibria. It has thus managed to obscure some essential …
A New Old Look At Terrorism Insurance: Jack Hirshleifer's War Damage Insurance After Fifty Years, Peter Siegelman
A New Old Look At Terrorism Insurance: Jack Hirshleifer's War Damage Insurance After Fifty Years, Peter Siegelman
Faculty Articles and Papers
No abstract provided.
The Economics Of The Insurance Antitrust Suits: Toward An Exclusionary Theory, Peter Siegelman, Ian Ayres
The Economics Of The Insurance Antitrust Suits: Toward An Exclusionary Theory, Peter Siegelman, Ian Ayres
Faculty Articles and Papers
On March 22, 1988, the Attorneys General of eight states filed antitrust actions in state and federal courts' alleging that major insurance and reinsurance companies colluded to boycott specific types of insurance coverage in violation of section 1 of the Sherman Act. The suits suggest that this collusion was responsible for the unprecedented increase in premiums and concomitant erosion of coverage that has come to be known as "the insurance crisis."' The lawsuits have provoked fierce denials by insurance industry participants, including assertions that the suits, which came in an election year, were politically motivated.' The litigation is certain to …