the process of singling out potential customers who are considered higher risks than the average.
- Also called antiselection.
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2024
How to use adverse selection in a sentence
So some insurers exited the markets, while the ones that stayed charged very high prices to offset this “adverse selection.”Why the Individual Mandate Is Effective and Efficient | Dr. Jonathan Gruber | March 27, 2012 | THE DAILY BEAST
Second, fix the adverse-selection problem this causes by mandating that everyone get themselves some health insurance.