adverse selection

(redirected from Anti-Selection)
Also found in: Medical, Financial.

adverse selection

n.
The tendency of sellers to substitute low-quality products for high-quality products or of a uniformly priced service, such as insurance, to attract only the least profitable customers. Adverse selection arises from the inability of buyers to differentiate between high-quality and low-quality products or of sellers to differentiate between profitable and unprofitable customers.
References in periodicals archive ?
The policy players now trying to improve or replace the current Affordable Care Act system are facing a familiar enemy: anti-selection.
If properly underwritten, the anti-selection risks can be significantly reduced compared to stand-alone LTC policies.
Anti-selection will likely impact the mortality level and durational slope.
After all, we sell more business when participation is good, and underwriters and actuaries relax a bit about the inherent anti-selection in voluntary business relative to the group business, where all eligible employees are covered.
It is believed that this initiative will facilitate the pricing and underwriting functions of the insurance companies while reducing the risks of anti-selection and fraudulent claims for the companies underwriting health insurance business.
There's also a concern about what's known as anti-selection, that retirees in ill health are more likely to take the lump sums.
Most voluntary group life and disability insurance products have minimum participation requirements to mitigate anti-selection risk.
5 billion annually due to anti-selection pressures when cover is not mandatory.
The increase in the young adult coverage rate could backfire, by encouraging anti-selection and driving young adults' claims through the roof.
Because a smaller percentage of employees generally participate in voluntary plans, and those employees pay a higher share of their premiums than on an employer-paid plan, the risk of anti-selection increases on a voluntary plan.
A YEAR at an inner-city English comprehensive school for anti-selection campaigner Martin McGuinness.
They have not even been privy to a worthwhile debate, as anti-selection campaigners preferred to speak of 'educational apartheid' rather than present intelligent arguments.