Cheap genetic tests will leave insurers exposed. 23andme, for example, earlier this year started telling its more than 1 million customers if they are at higher risk of developing Alzheimer’s, Parkinson’s and other diseases. That is giving the Alphabet-backed firm a booster shot of some 50 percent to its $1 billion valuation as it looks to raise $200 million of new equity, TechCrunch reported this week. Such success, though, has a downside.Those whose test results contain bad news may well want more health, life and disability coverage. That could breed adverse insurance selection, making the dysfunctional U.S. healthcare system worse.

Need and yield are making cat bonds roar. Low interest rates and a hunger for uncorrelated returns are fueling investor demand for bonds insuring against hurricanes, pandemics and other catastrophes, pleasing insurers eager to lay off risk. Yields on these instruments have fallen even as issuance has soared. Disaster, if it strikes, may only increase their popularity.In a typical cat bond, an issuing insurer or government agency pays a healthy interest-rate premium to investors over about three years. If a pre-specified event happens, the buyer forfeits some or all of the principle. So if, say, an earthquake above a certain