ABSTRACT
This chapter examines the economic underpinning of the evolution of information disclosure standards in the formation of insurance contracts. Proponents of the ‘law and economies’ strain of jurisprudence have long maintained that common law doctrine is a reflection of the principles of economic efficiency underlying market function.2 Left to its own devices, free market
philosophies hold that the unfettered interplay between buyers and sellers will naturally produce optimal outcomes in terms of production and supply or, in the more prosaic terms of the insurance market, will naturally reach optimal levels of risk allocation between the parties.
