Explore the differences between moral and morale hazards, and their impact on insurance behavior and policy design.

“Moral hazard” refers to the risks that someone or something becomes more inclined to take because they have reason to believe that an insurer will cover the costs of any damages. The concept ...

The fallout from Silicon Valley Bank’s failure has revived some of those financial crisis buzzwords we really, really hoped we wouldn’t have to say again. “Bailout,” “emergency lending facility” and ...

The term “moral hazard” was first widely used in the insurance industry in the 18th century. Put simply, it refers to a situation in which a person or institution engaged in a risky activity does not ...