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Showing results for adverse selection. Search instead for Adverse+Reaction.

adverse selection

American  

noun

Insurance.
  1. the process of singling out potential customers who are considered higher risks than the average.


Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

See Examples For:

“The credit providers are going to try to offset that adverse selection, and the only way they can do that is raise prices.”

From The Wall Street Journal ● Oct. 12, 2026

While Piskorski’s research suggests that iBuying is potentially profitable, this will be true only if companies can manage this adverse selection problem.

From Washington Post ● Nov. 9, 2021

This phenomenon, also known as adverse selection, could collapse the market.

From New York Times ● Feb. 17, 2020

Fewer healthy people in the pool raises the claims per member — a process that economists call adverse selection.

From Salon ● Nov. 19, 2018

Providing insurance at the place of employment presents an attractive way to pool risk and minimize adverse selection.

From Slate ● Mar. 24, 2014

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