Moral hazard

Term · Insurance and risk management · MLC-T-INS-002226

The chance that an insured's dishonesty or bad character raises the likelihood or size of a loss, as when an owner sets fire to property for the insurance money or inflates a claim. It is a human hazard rather than a physical one. In economics the term is also used more broadly for the tendency to take less care once protected, which insurance practice calls morale hazard, a carelessness without intent.

Table 1. Record
Identifier	MLC-T-INS-002226
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-002226",
  "term": "Moral hazard",
  "field": "Insurance and risk management",
  "definition": "The chance that an insured's dishonesty or bad character raises the likelihood or size of a loss, as when an owner sets fire to property for the insurance money or inflates a claim. It is a human hazard rather than a physical one. In economics the term is also used more broadly for the tendency to take less care once protected, which insurance practice calls morale hazard, a carelessness without intent.",
  "url": "https://mlchart.com/terminology/insurance/moral-hazard/"
}

Record 2,172 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.