Question

Differences between uninsurable and insurance risks.give examples of how the company
that you have visited,will explain these concepts to their clients.

Answer 1

Insurable risks:
- Type of risk in which the insurer provides for or against because it is possible to collect, calculate or estimate the probable future losses.
- Holds in the prospect of a loss, but not for gain.
- Risk can be forecast and measured.
example:The chance that some vehicle will involve in accident in a particular year can be determined by number of vehicles which have been involved in each of the previous years.
Unisurable risks:
-Type of risk in which the insurer is not ready to take out insurance against any because the likely future losses can be estimated and calculated.
- Holds in the prospects of loss and gain.
- risk cannot be measured.
Example: All risks relating to natural disasters such as flood, earthquake