What is a requirement for a risk to be insured in general insurance?

A fundamental requirement for a risk to be insured in general insurance is that it must be fortuitous, meaning it involves an element of chance and is uncertain. Insurers are willing to provide coverage for risks that can both occur and not occur, creating a situation where losses are unpredictable. This characteristic aligns with the nature of insurable risks, where the insurance product is designed to cover potential losses resulting from unforeseen events, such as accidents, theft, or natural disasters.

On the other hand, a risk that is avoidable or inevitable falls outside this criterion. Avoidable risks are those that can be managed or evaded through preventive measures, which means they do not fit the insurance model designed to cover unpredictable losses. Similarly, inevitable risks are those that will certainly happen, which negates the uncertainty vital for insurance. Thus, fortuitous risks are the acceptable norm for general insurance, ensuring that the protection provided remains relevant and beneficial to policyholders.