Wiki : Insurance. According to study texts of The Chartered Insurance Institute, there are the following categories of risk:[1] Financial risks which means that the risk must have financial measurement.Pure risks which means that the risk must be real and not related to gamblingParticular risks which means that these risks are not widespread in their effect, for example such as earthquake risk for the region prone to it.
It is commonly accepted that only financial, pure and particular risks are insurable. Insurance Basics: How Insurance Works. I don’t write a lot about insurance around here. For one thing, insurance is kind of boring. For another, I don’t know a lot about it. Still, insurance is an important part of personal finance, and my silence on the subject hasn’t gone unnoticed. Josh wrote last week to make a request: How to Understand Insurance Terms and Policy Terminology.