adverse selection

adverse selection

noun Insurance.
the process of singling out potential customers who are considered higher risks than the average.
Also called antiselection.
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
Cite This Source Link To adverse selection
Dictionary.com's 21st Century Lexicon
Main Entry:  adverse selection1
Part of Speech:  n
Definition:  the tendency for credit and insurance to be sought only by those who have greater than average need which thereby raises a plan's cost and reduces its benefits; also, the process of singling out high-risk customers for credit and insurance coverage; also called antiselection
Example:  Adverse selection causes higher than average costs.
Usage:  business
Main Entry:  adverse selection2
Part of Speech:  n
Definition:  a situation in which sellers have relevant information that buyers lack (or vice versa) about some aspect of product quality
Usage:  business
Dictionary.com's 21st Century Lexicon
Copyright © 2003-2014 Dictionary.com, LLC
Cite This Source
Copyright © 2014 Dictionary.com, LLC. All rights reserved.
  • Please Login or Sign Up to use the Recent Searches feature