Oak processionary posed a health threat. In April 2018, an outbreak of the caterpillars was reported across Greater London and surrounding areas. The moth is now fairly common in Belgium, notably in the Campine but also elsewhere, with fluctuating population numbers from year to year. In 2007 infestations in the Belgian province of Limburg were so acute that soldiers were deployed to burn them. In the Netherlands, the caterpillars are dealt with by biological pest control. Local authorities use, like in Germany, fluids containing bacteria that are toxic only to the caterpillars. These fluids are sprayed onto the infected trees. Furthermore, an
Moral hazard it were fully exposed to the risk. According to contract theory, moral hazard results from a situation in which a "hidden action" occurs. Bengt Holmström said this: Moral hazard can be divided into two types when it involves asymmetric information (or lack of verifiability) of the outcome of a random event. An "ex-ante" moral hazard is a change in behavior prior to the outcome of the random event, whereas "ex-post" involves behavior after the outcome. For example, in the case of a health insurance company insuring an individual during a specific time-period, the final health of the individual can be