Definitions for "Adverse Selection"
Occurs when plan enrollees include a higher percentage of high-risk individuals than are in the average population, resulting in the potential for greater health care utilization and, therefore, increased costs.
Adverse selection arises due to asymmetric information because individuals have a better sense of their risk than the company that insures them. Adverse selection is said to occur when individuals are able to purchase health insurance at rates which are below actuarially fair rates plus administrative costs.
An employer's selection practices or policies that result in discriminatory or unfavorable treatment toward an individual or individuals who are members of a protected group.
Keywords:  antiselection, see
See antiselection.
A situation in which market participation is a negative signal.
the situation that occurs when higher-quality consumers or producers are driven out of the market because unobservable qualities are misvalued
Alternative investments Asset allocation decision