( Insurance : Underwriting )
Insurance companies need to limit the risk of adverse selection, and ensure that not only the "bad" risks seek insurance.
Since there is a tendency for those most likely to have losses to take out health
insurance, an element of adverse selection exists.
Adverse selection is a term used to describe the tendency of those in dangerous jobs or with high-risk
lifestyles to want to take out life insurance.
Collins English Dictionary. Copyright © HarperCollins Publishers