MORAL HAZARD Definition & Meaning

moral hazard

noun

Insurance. an insurance company's risk as to the insured's trustworthiness and honesty.
the risk that an individual or organization will act irresponsibly or recklessly if protected or exempt from the consequences of an action.

moral hazard

noun

insurance a risk incurred by an insurance company with respect to the possible lack of honesty or prudence among policyholders

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51�Թ� History and Origins

Origin of moral hazard¹

First recorded in 1915–20

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Example Sentences

Examples have not been reviewed.

This is the very definition of a moral hazard.

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Here was the Ukrainian leader suggesting Trump had failed to grasp the moral hazard of dealing with the war's aggressor.

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Some of the concern stems from what climate researchers call the “moral hazard” problem — the possibility of humanity geoengineering its way out of climate impacts could discourage decarbonization efforts.

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They routinely engage in political and other behavior that constitutes a “moral hazard.”

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“These are moral hazards I don’t think are acceptable,” he says, adding that he believes there is “something wrong with their rules of engagement”.

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