Meditations and Learnings

Meditations and Learnings

Adverse Selection

When asymmetric information is exploited and results in a negative consequence for the party with less material knowledge. Right now life insurance companies could be subject to insuring somebody who knows themselves to be at greater risk than is let on. In the future though it is the insurance companies that may be able to buy data about us that we don’t even know and subsequently understand the risk in our lives better than we do.