Insuring something against a loss can quietly make that loss more likely

Once a person or company is protected from the consequences of a risk, they tend to behave more recklessly than they would if they bore the full cost themselves. Economists call this moral hazard, and it's why insurers build in deductibles and exclusions, and why the concept became central to debates over bailing out banks 'too big to fail.'

— Paul Samuelson, William Nordhaus, Economics — standard treatment of moral hazard in insurance economics

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