Insurance covers the spectrum of human activity and endeavour. In consequence it is no surprise that tensions should develop between the demands Of the insurer, on the one hand and the insured, on the other. For instance, the AIDS epidemic has created a new dimension to the question of discrimination and the High Court decision in/IMP Society v Goulden has highlighted the question of how much latitude should be afforded to insurers in assessing what risks they will accept.

Professor Tarr argues that a careful balance must be maintained, especially in an area such as insurance where the essence of the insurance transaction is the transference of risk from one person to another. This transfer should take place in informed circumstances and without undue advantage being bestowed upon either party.