absolute risk | Insurance Software development

Understanding Speculative and Pure Risk in Insurance

Author - Webner
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2:49 pm
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Insurance is to cover the financial risk but what type of risk can be insured? Can risk in gambling be insured or a startup business or a stock investment? No because risk in such endeavours is with the intention to make gains. What if the gain is not made, should the insurance company reimburse in such a case? No, hence such risks cannot be insured. These are known as speculative risks in insurance terminology. What about risks that can be covered? Like a vehicle can be insurance, a person’s life can be insured and a building can be insured […]

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