For a risk to be insurable, it must be:

For a risk to be insurable, it must be definable and have a quantifiable value. This means that the risk can be clearly defined in terms of what events could trigger a loss and the potential financial impact of such events can be estimated. Having a quantifiable value allows insurance companies to assess the risk and set premiums accordingly, ensuring they can cover the potential payouts.

Insurability requires that the nature of the risk is specific enough so that it can be managed through policy provisions. For example, property insurance can quantify losses from damage or theft based on the value of the property, which can easily be assessed. In contrast, risks that are vague or lack tangible value would be much harder for an insurer to underwrite effectively.

While elements like predictability and commonality among individuals can influence risk management strategies, the primary requirement for insurability focuses on the ability to define the risk clearly and have measurable impacts associated with it. The idea that a risk must be guaranteed to result in loss would not fit with the concept of insurability; rather, insurance covers uncertainties and not guaranteed outcomes.