noun the process of a person seeking insurance coverage being more likely to have high-risk characteristics, which can lead to higher premiums or denial of coverage
In finance, adverse selection can occur in markets where asymmetric information leads to suboptimal outcomes for participants.
Adverse selection can impact healthcare markets when individuals with pre-existing conditions are more likely to seek insurance coverage, leading to higher costs for insurers and potential challenges in providing affordable care.
In the field of economics, adverse selection refers to a situation where one party in a transaction has more information than the other, leading to potential negative outcomes.
Adverse selection is a key concept in insurance, where individuals with higher risk profiles are more likely to seek insurance coverage, leading to higher costs for insurers.
In marketing, adverse selection can refer to targeting the wrong audience or segment with a product or service, leading to lower effectiveness and potential losses.
Adverse selection can be a consideration in public policy decisions, particularly in areas such as healthcare reform or insurance regulation.
In the field of insurance, writers may encounter adverse selection when individuals with higher risk profiles are more likely to purchase insurance policies, leading to increased costs for the insurer.
Psychologists may encounter adverse selection when clients who are more likely to have severe mental health issues seek their services, potentially leading to higher caseloads and more challenging cases.
Financial advisors may encounter adverse selection when clients who are in dire financial situations seek their services, potentially leading to higher risks and lower returns on investments.
Healthcare providers may encounter adverse selection when patients with more complex medical conditions seek treatment, potentially leading to higher costs and resource utilization.