Moral hazard refers to the tendency of the insured to change his daily behavior after obtaining insurance protection, which is divided into pre-existing moral hazard and post-existing moral hazard; Insurance may have a certain influence on the motives of the insured, which is called moral hazard beforehand. After the loss occurs, insurance may have a certain impact on the insured's motivation to reduce the loss, which is called moral hazard afterwards.
The existing factors of moral hazard are intangible factors related to moral cultivation, that is, people deliberately promote the occurrence of risk accidents, resulting in property losses and personal casualties; For example, fraud and arson by the insured or the insured are all moral hazard factors. In insurance business, the insurer is not liable for compensation or payment for economic losses caused by moral hazard factors of the insured or the insured.
Moral hazard has three characteristics:
First, endogenous characteristics: that is, the internal consideration and calculation of interests and costs by economic actors;
Second, traction: all risk makers have the purpose of interest temptation;
3. The characteristics of harming the interests of others: that is, the risk income of risk makers is an improper preemption of the interests of information disadvantaged parties, in other words, there is asymmetry between risk makers and risk takers.