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Adverse selection

The tendency of those exposed to a higher risk to seek more insurance coverage than those at a lower risk. Insurers react either by charging higher premiums or not insuring at all. In the case of natural disasters, such as earthquakes, adverse selection concentrates risk instead of spreading it. Insurance. works best when risk is shared among large numbers of policyholders.

News On Adverse selection
NSEL to rematerialise e-series contracts from Apr 12

04-04-2014| Source:PTI

did not find anything adverse against such contracts.

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