moral hazard

moral hazard

n.

A risk to an insurance company resulting from uncertainty about the honesty of the insured.

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moral hazard

n

(Business / Insurance) Insurance a risk incurred by an insurance company with respect to the possible lack of honesty or prudence among policyholders

Thesaurus

Noun

1.

moral hazard - (economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance); "insurance companies are exposed to a moral hazard if the insured party is not honest" economic science, economics, political economy - the branch of social science that deals with the production and distribution and consumption of goods and services and their management endangerment, hazard, jeopardy, peril, risk - a source of danger; a possibility of incurring loss or misfortune; "drinking alcohol is a health hazard"