Testing for Asymmetric Information Using “Unused Observables” in Insurance Markets: Evidence from the U.K. Annuity Market


This paper tests for asymmetric information in the U.K. annuity market by trying to identify 'unused observables,' attributes of individual insurance buyers that are correlated both with subsequent claims experience and with insurance demand but that insurance companies historically did not use to set insurance prices. Unlike the widely-used positive… (More)


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