adverse selection

American  

noun

Insurance.

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

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Example Sentences

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

Zillow may simply have realized before anyone else that adverse selection is intractable.

From Washington Post

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

From New York Times

Adverse selection refers to trading against market participants who have more information than you, potentially leaving you on the wrong side of the trade.

From Reuters

Although the existing rules appear to work tolerably well, the problems of nonpayment, disenrollment, and adverse selection might well be more serious under M4Am than they are under traditional Medicare.

From Salon