Remember that in the earliest days of insurance, it tended to be a matter of mutual societies (albeit mutual societies of merchants) pooling their risks, and so it was more sensible to regard it as a "moral" issue if one were to stop looking after one's warehouse properly and thus slough off the risk onto the other members of the syndicate.
best dd > > I was thinking the "moral" in "moral hazard" is "do good", "due care" > -Do good by insuring someone against risk. It is moral to protect > someone against risk, but then there is more risk. By protecting against > the hazard, it is made more likely that the hazard will come about. > That's it ? > > Why it's the liberal dilemma, the White Man's Burden. If I am > charitable and take care of those darkies, they become careless and mess > themselves up. Lazy,immoral ungrateful welfare queens, live the hazards > of high liberal morality. >
