Non-insurable Risks

These are risks which cannot be insuredThe insured is the party (ies) (person or firm) having property covered against risk. They are covered by an insurance policy. More because they cannot be calculated due to insufficient information available to the insurerAn insurer is usually a company but can be a person, that provides financial support in the case of specific bad events listed in an insurance policy. e.g NICON insurance company,... More. The probability of this risk cannot be calculated which makes it impossible to be insured against. The risks cannot be forecast and measured

Features of Non-Insurance Risks

1. Impossible to estimate the loss.
2. There is no information about previous occurrence
3. It cannot be insured against.

Examples of these risks are;

1. Change in fashion
2. An event is inevitable (such as a terminally-ill person’s death)
3. Change in taste
4. Mail-administration
5. Gambling
6. Changes in demand
7. Speculation
8. Acts of god e.g earthquake
9. War
10. Marketing of new product
11. Loss of profit through competition
12. Obsolescence of products as a result of technological advancement.