Insurance normally insure only pure risks .
However, not all pure risk is insurable .certain requirements usually must be fulfilled before a pure risk can be privately insured .From the view point of the insurer, there are ideally six requirement of an insurable risk:
There must be a large number of exposure units
The loss must be accidental and unintentional
The loss must be determinable and measurable
The loss should not be catastrophic
The chance of loss must be calculable
The premium must be economically feasible
However, not all pure risk is insurable .certain requirements usually must be fulfilled before a pure risk can be privately insured .From the view point of the insurer, there are ideally six requirement of an insurable risk:
There must be a large number of exposure units
The loss must be accidental and unintentional
The loss must be determinable and measurable
The loss should not be catastrophic
The chance of loss must be calculable
The premium must be economically feasible