moral hazard

noun

Insurance. an insurance company's risk as to the insured's trustworthiness and honesty.
the risk that an individual or organization will act irresponsibly or recklessly if protected or exempt from the consequences of an action.

moral hazard

insurance a risk incurred by an insurance company with respect to the possible lack of honesty or prudence among policyholders

First recorded in 1915–20

The prospect of a bailout presents China the same kind of moral hazard that the US, for instance, faced during the banking crisis of 2008.

A moral hazard arises when people no longer feel the need to make careful choices because they expect others to cover the risk for them.

Five years ago, when the government bailed out Bear Stearns, we heard a lot about moral hazard.

And just as there are few atheists in foxholes, there don't seem to be many moral-hazard-hawks in a financial crisis.

Moral hazard is never desireable, but in the case of homicide, it's horrible indeed.

This is, of course, deeply morally unsatisfying, and it raises real questions about moral hazard.

One would think Israelis would understand the opportunity cost, and moral hazard, of denying these things to Palestinians.

In recent years the insurance companies have come to recognize very clearly what is called the moral hazard in life.

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