Wharton Pension Research Council Working Papers

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Working Paper

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This paper evaluates the extent of adverse selection in life insurance and annuities in international markets. We examine the extent of adverse selection in group and individual life insurance. In addition we also compare results with prior analyses of adverse selection in international annuity markets, focusing on the US, UK and Japan. Our results may be used to assess the extent to which life insurers can hedge mortality exposure by writing both life insurance and annuities, and to determine a normal range for adverse selection in international insurance markets.


Support for this research was provided by the Pension Research Council at the Wharton School, the National Bureau of Economic Research, the Economic and Social Research Institute of the Government of Japan, and the Wharton-SMU Research Center at Singapore Management University.

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©2002 Pension Research Council of the Wharton School of the University of Pennsylvania. All Rights Reserved.

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Date Posted: 06 September 2019