Market Failure

"The findings and conclusions <of the Moss Report>, and this is the part that created the explosion, were that there is a shortfall of information, particularly with respect to ordinary life and that consumer experience does suggest that the consumer Is not able to adequately determine the suitability of the product, the quality of the product, or the cost of theĀ  product. As a consequence, consumers are sustaining losses, and this would be a definite indication of a market failure."

MR. JACK E. BOBO (Executive Vice President of the National Association of Life Underwriters (NALU).

1979, Cost Disclosure, Society of Actuaries