Is moral hazard likely to be a bigger problem in the health insurance market or the...

Is moral hazard likely to be a bigger problem in the health insurance market or the life insurance market?

Expert Solution

Moral hazard is a higher problem in a health insurance market, a person whose health is insured will be more reckless in activities that can injure him or her, that is because the cost of health damage is covered but if its the case of the life insurance there is no place for being reckless,

SO, moral hazard is a bigger problem in a health insurance market.

Rahul Sunny answered 2 years ago

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