5 ms·
Not strictly so. An example of misaligned incentives would be an insurance salesman/CEO overstating the likelihood of death, and thus overstating the likelihood
by whatgoodisaroad 5y ago
Not strictly so. An example of misaligned incentives would be an insurance salesman/CEO overstating the likelihood of death, and thus overstating the likelihood of a payout to the customer. This hypothetical would result in greater margin for the insurer.