Which of the following is a characteristic of an insurable risk?

An insurable risk is characterized by its ability to be accurately quantified and defined. This means that the risk can be measured in terms of frequency and severity, which allows insurers to calculate premiums and determine coverage. For a risk to be insurable, it must be clearly articulated, allowing both the insurer and the insured to have a mutual understanding of what is covered and under what circumstances.

Additionally, the quantification of risks plays a critical role in risk assessment processes and helps in the creation of statistical models that insurers rely on to predict losses. When a risk is well-defined, it also simplifies the claims process and ensures that expectations are aligned between the insurer and policyholders.

The other characteristics mentioned do not align with the fundamental principles of insurable risks; for instance, subjective nature can lead to ambiguity and disagreement, which is not conducive to the insurability. Comparing to personal savings accounts or distinguishing from pure risk does not accurately reflect the essential attributes that define insurable risks. This focus on quantification and definition is what ultimately contributes to an effective and manageable insurance system.