MLchartDataset catalogue

Adverse selection

Term · Insurance and risk management · MLC-T-INS-000345

The tendency for individuals with a higher-than-average probability of loss to seek out or continue insurance coverage to a greater extent than those with a lower probability of loss. This phenomenon can lead to higher claims costs for insurers if not properly managed through underwriting and pricing. For example, individuals in poor health are more likely to purchase health insurance.

Table 1. Record
IdentifierMLC-T-INS-000345
FieldInsurance and risk management
Record as JSON 
{
  "id": "MLC-T-INS-000345",
  "term": "Adverse selection",
  "field": "Insurance and risk management",
  "definition": "The tendency for individuals with a higher-than-average probability of loss to seek out or continue insurance coverage to a greater extent than those with a lower probability of loss. This phenomenon can lead to higher claims costs for insurers if not properly managed through underwriting and pricing. For example, individuals in poor health are more likely to purchase health insurance.",
  "url": "https://mlchart.com/terminology/insurance/adverse-selection/"
}

Record 76 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.