Too embarrassed to ask: what is moral hazard?

The term “moral hazard” comes from the insurance industry in the 18th century. But what does it mean today?

Too Embarrassed To Ask: what is moral hazard? - YouTube Too Embarrassed To Ask: what is moral hazard? - YouTube
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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 bear the full negative consequences of their decisions. This lack of consequences encourages them to behave more recklessly than if they were fully responsible for their actions.

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