An insurer is exposed to the risk of anti-selection if a policyholder or group of policy holders can make use of information not available to the insurer to obtain insurance cover that would not have been granted if the insurer had had the information, or to obtain cover on more favorable terms than would have been granted by the insurer. An insurer may also be exposed to the risk of anti-selection by failing to make use of available relevant information.
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UK: See: Adverse Selection.