The existence insurance market is susceptible to two primary challenges: moral hazard and adverse selection. Moral hazard arises when individuals engage in riskier behaviors after purchasing insurance, knowing they are protected from the full impact. For example, a insured person might ignore their health appreciably knowing that the insurer will c

The existence insurance market is susceptible to two primary challenges: moral hazard and adverse selection. Moral hazard arises when individuals take in riskier behaviors after purchasing insurance, knowing they are protected from the full impact. For example, a insured person might ignore their health significantly knowing that the insurer will c

The annuity insurance market is susceptible to two primary challenges: moral hazard and adverse selection. Moral hazard arises when individuals engage in riskier behaviors after purchasing insurance, knowing they are protected from the full consequences. For example, a insured person might disregard their health greatly knowing that the insurer wil