Moral hazard refers to an increase in the probability of loss caused by the behavior of the policyholder. Providing insurance protection to an individual may lead that person to behave more carelessly than he or she did before having coverage. If the insurer cannot predict this behavior and relies on past loss data from uninsured individuals to estimate rates, the resulting premium is likely to be too low to cover losses. Ways to avoid moral hazard are to raise the premium, introduce deductibles or coinsurance as part of the insurance contract, place upper limits on the amount of coverage an individual or enterprise can purchase, or require specific mitigation measures as a condition of insurance.