First, for adverse selection, it is mainly reflected in sickness insurance. In this case, insurance companies will generally take preventive measures before taking out insurance, such as improving the procedures for informing and inquiring about insurance, asking about past medical history and health status, and asking customers to inform them. At the same time, there will be some exemption clauses in the contract to avoid the risk of adverse selection, such as "except for diseases before insurance" and so on. Claim process is another key point of risk review, which is mainly reflected in claim investigation. Generally, it will be verified whether the insured intentionally fails to tell the truth or takes out insurance despite illness by verifying the hospital, checking other hospitals, asking about the medical history and understanding the past health status.
The second is moral hazard, which is relatively wide. The main moral hazard is controlled by claims, such as the risk of backdating (that is, insurance after the accident), the risk of deliberately not telling the truth and so on.
At present, domestic insurance companies generally adopt the business model of "lenient entry and strict exit", that is, loose underwriting and strict claims settlement, which has caused many disputes and the credit of the insurance industry has declined. The ideal way is "strict entry and wide exit", that is, the formalities required for insurance are complete and conform to legal procedures. However, due to various reasons, such as residents' insurance awareness, this mode of operation is unlikely to be established.