Insurance is the foundation of modern life. Without insurance, many aspects of today’s society and economy could not function. The insurance industry provides coverage for risks economic, climatic, technological, political and demographic, allowing people to conduct their daily lives and businesses to operate, innovate and grow. The word risk is often used in connection with insurance, finance and banking. Insurance risk is a specific element being subject to any insurance contract. There are many situations in which the insured may influence the likelihood of risks exacerbating environmental objective risk taken into account in determining the scale of insurance premiums, a situation arises the notion of moral hazard. Moral hazard arises because the insured assumes full responsibility for his actions and consequences and therefore tends to behave less cautious than usual, leaving the insurer to assume responsibilities for the consequences of his actions. A standard problem of applied contracts theory is to empirically distinguish between adverse selection and moral hazard.