Cherry picking

A practice where insurers choose only the risks they want to cover and decline to provide quotations for others. This can be due to the risk itself, or it may be considered that the proposer is considered to be a moral hazard or have a poor claims record. Cherry picking developed as the building insurance market opened up, especially to direct writers. Before that, much of the business was arranged through banks and building societies, but some insurers found that by selecting only the risks they wanted, they could offer lower and more competitive premiums to tempt the customer away from their competitors

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