moral hazard

1. 1.

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

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

   Broaderhazard

   economics

Questions about moral hazard

What does moral hazard mean?

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

Is moral hazard a common word?

moral hazard is banded "Rare" — specialist or archaic — most readers will not have met it. The band comes from how often the word appears in a large corpus of everyday English, not from an editor's impression.