For a risk to be considered insurable, it must be:

For a risk to be considered insurable, it must be fortuitous, meaning that the occurrence of the risk must be uncertain and arise from random, unforeseen events. This characteristic is essential because insurance operates by pooling resources to cover the unexpected losses of a few individuals. If a risk were not fortuitous, it would imply that the event could be predicted or controlled, which would undermine the basic principle of risk-sharing that insurance is built upon.

When risks are fortuitous, insurance becomes a viable solution for individuals or businesses, allowing them to transfer the financial consequences of these unpredictable events to an insurance company. This allows both parties to manage their potential losses effectively. The nature of fortuitous risks ensures that premiums are commensurate with the likelihood of claims being made, which is fundamental to the sustainable operation of an insurance model.

The other concepts presented do not encompass the essential characteristic of insurability. For example, fundamental risks are widespread and affect large groups simultaneously, which can lead to an unmanageable number of claims for an insurer. Nonfinancial risks pertain primarily to intangible losses that may not be easily quantifiable or insurable in traditional terms. Speculative risks involve loss or gain, which is contrary to the insurable interest concept