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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:

Buying annuities individually can be costly, in part because those who expect to live longer are more likely to purchase them, creating adverse selection that drives up prices.

From The Wall Street Journal Oct. 18, 2025

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

In an odd twist, the administration notes in the proposed rule that the ACA has provisions that could protect the marketplace from that type of adverse selection, which can drive up prices.

From Salon Nov. 1, 2018

It is an extremely complex policy matter, and Mr. McConnell has often reveled more in tactics and procedure than the arcana of community rating and adverse selection.

From New York Times Jul. 7, 2017

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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