Definitions
There is 1 meaning of the phrase
Adverse Selection.
Adverse Selection - as a noun
A situation where sellers have information that buyers don't (or vice versa) about some aspect of product quality.
Example: "The insurance company investigators realized new policy-holder louis was an adverse selection shortly after he was insured, when a slew of illnesses suddenly sent him to the hospital numerous times."
Synonyms (Exact Relations)
anti-selectionExample Sentences
"Insurance companies often face adverse selection as individuals with higher risk are more likely to purchase insurance."
"Lenders may experience adverse selection if they lend money to borrowers with hidden credit risks."
"Life insurance companies carefully assess the risks of adverse selection by scrutinizing the medical history of applicants."
"Health insurance providers often face adverse selection as individuals with pre-existing conditions are more likely to seek coverage."
"Government intervention may be necessary to prevent adverse selection in certain industries."
