Adverse selection is a phenomenon that occurs in the insurance market when individuals with a higher risk of making a claim are more likely to purchase insurance than those with a lower risk. This can lead to higher premiums for those with a lower risk, as well as a decrease in
From Wikipedia
In economics, insurance, and risk management, adverse selection is a market situation where asymmetric information results in a party taking advantage of undisclosed information to benefit more from a contract or trade.