Adverse Selection, Insurance 1
Adverse Selection, Insurance 1 : "Adverse selection' occurs when insurers cannot distinguish between less risky and more risky properties, although homeowners can. When premiums do not reflect differences in risk that are known to potential policyholders, those who buy insurance are often at greatest risk for the hazards covered. Adverse selection in the market for natural catastrophe suggests that homeowners who are at the highest risk of experiencing a natural catastrophe will buy available insurance". (GAO, Natural Disasters: Public?, Nov 2007, 3)
No records Found