Elements of Insurable Risks (2020)

Elements of insurable risks means under what situations are insurers willing and able to provide insurance coverage.

In the previous lesson, it was stated that insurance companies only insure pure risks—circumstances in which there is only a chance of loss and no chance of gain. This lesson provides more details about which pure risks are insurable. There are five key characteristics (elements) of these insurable risks, which are described on the following slides.