MORAL HAZARD

Pronunciation (US):

(GB):

 I. (noun) 

Sense 1

Meaning:

(economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance)

Example:

insurance companies are exposed to a moral hazard if the insured party is not honest

Classified under:

Nouns denoting stable states of affairs

Hypernyms ("moral hazard" is a kind of...):

endangerment; hazard; jeopardy; peril; risk (a source of danger; a possibility of incurring loss or misfortune)

Domain category:

economic science; economics; political economy (the branch of social science that deals with the production and distribution and consumption of goods and services and their management)

Credits