Final answer:
The life and health insurance markets do not show similar underwriting cycles as the property/casualty segment due to unique challenges like adverse selection, which can lead to high costs and mandates for low-risk individuals to purchase insurance.
Step-by-step explanation:
The statement that the life and health insurance markets do not show similar underwriting cycles as the property/casualty segment is True. Unlike the property/casualty segment, health insurance providers face unique challenges such as adverse selection, where riskier individuals are more likely to purchase insurance than those who perceive themselves as low-risk. This can result in a market where only high-risk individuals are insured, leading to very high insurance costs. To mitigate this, insurers may try to accurately segregate customers into risk groups and adjust premiums accordingly or encourage low-risk individuals to purchase insurance, potentially at higher rates. Government regulations can also influence the behavior of the health insurance market by mandating the purchase of insurance, thus addressing issues of adverse selection.