Adverse selection

Japanese: 逆選択

Generally, people who are at high risk, such as those with health concerns or those who work in dangerous jobs, tend to voluntarily purchase insurance if the risks around them are high. In addition, people may conceal or falsely report important information such as their medical history, health condition, family environment, or occupation in order to enter into contracts that are favorable to them or to obtain insurance money or benefits unfairly. This is also called moral risk.

Source: Minna no Seiho Hoken Advisor: Information on the Basic Insurance Glossary

Japanese:

一般的に危険度の高い人、例えば健康に不安のある人や危険な職業に従事している人など、身の回りのリスクが高いほど、自発的に保険に加入しようとする傾向があります。さらに、病歴や健康状態、家庭環境、職業などの重要な情報を、隠したり虚偽の報告を行い、自分に有利な契約を結ぼうとしたり、保険金や給付金などの不当に得ようとすることです。モラルリスクともいいます。

出典　みんなの生命保険アドバイザー保険基礎用語集について　情報

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