What is one requirement for a risk to be classed as insurable?

For a risk to be classified as insurable, it must be fortuitous, which means that the occurrence of the event is uncertain and unpredictable. This characteristic is crucial because insurance is designed to provide protection against unforeseen events or risks that may happen in the future. If a risk were predictable or certain, it would not be suitable for insurance as it would lead to certainty rather than a sharing of risk among many policyholders.

Fortuitous events allow insurers to calculate premiums based on probability, and they can pool the risk across many individuals. This spreading of risk is fundamental to the insurance business model. If risks were not fortuitous, insurance companies would likely face significant financial challenges since they wouldn't be able to properly assess and manage the risks involved in providing coverage.

While the value of a risk and the potential for loss can influence insurance policies, they do not define the fundamental characteristic required for a risk to be insurable. Insurable risks must inherently involve uncertainty, allowing for the possibility of occurrence, thus making fortuity a core requirement.