Results for tag: "Moral Hazard"

Moral Hazard is a concept in the insurance market that refers to the risk of a policyholder taking on more risk than they would normally due to the presence of insurance. This can lead to a situation where the policyholder is incentivized to take on more risk than they would without insurance, as they are not bearing the full cost of the risk. This can lead to an increase in the cost of insurance for all policyholders. Moral Hazard is a major factor in the insurance market, as it can lead to an increase in the cost of insurance for all policyholders. It is important for insurers to be aware of the potential for Moral Hazard and to take steps to mitigate it. Some companies in the Moral Hazard market include Allianz, AXA, Chubb, Liberty Mutual, and Zurich. Show Less Read more