The tendency of individuals who suspect or know they are more likely than average to experience loss to apply for or renew insurance to a greater extent than people who lack such knowledge of probable loss. Also known as adverse selection and selection against the company. TO TOP

See Adverse Selection.

The tendency of people with a greater-than-average likelihood of loss to apply for or to continue insurance cover to a greater extent that other people. Also called adverse selection or selection against the insurer.