Insurable risk
A insurable Risque by a company of Assurance S must be
- random,
- sufficiently running to be able to calculate its Probabilité,
- without being too current, at the point to be quasi certain, because then it could be covered only with one prohibitory tariff.
The risk is the principal character of any contract of insurance, and thus defines the concept of insurable risk. The risk can relate on the supervening or it not occurence of an event (for example flight), but also to the date of realization of an unquestionable event (for example in life insurance).
Bonds between assurability and tariffing
So that an insurer agrees to guarantee a risk, it must be able to tariff the risk, i.e. to calculate a Prime of insurance. This premium must intended well not to be infinite, which excludes certain risks being able to bring to arbitrarily high losses at considerable frequencies. This implies that the average loss is finished, but also that the variability of the losses is. A risk which does not remplierait these conditions would not be insurable, but can however easily become again it if the insurer adds a clause limiting his maximum loss.
Case of distortion
Lastly, two possible behaviors of assured can put in danger the assurability of a risk: the moral Risk and the Antisélection.
- a policy-holder can see his profile risk to evolve/move when it subscribes to a contract of insurance: the existence even of the contract of insurance will increase the frequency or the cost of the disasters. Any estimate of the risk based on a population of uninsured people is not consequently representative any more of the risk really supported by the insurer. It is the case for example for the health insurance in the field of optics. A policy-holder will more often change glasses if it is completely refunded that if the cost of its new equipment is entirely with its load.
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the antisélection, it, takes its source in the Dissymétrie of information between the insurer and his potential policy-holder. The potential policy-holder knows indeed better his profile of risk than the insurer, who can only evaluate it. In the presence of antisélection, the policy-holder subscribes to the contract only because it knows that its risk is higher than the estimate than makes the insurer of it.
Risks arising of other techniques of cover that the insurance
The risks related to the economic and financial evolutions, for example with the trend of the prices of certain matters or with that of the courses of currencies and interest rate are not usually regarded as insurable with the clean direction. But they can be the subject of cover on the market of the contracts Dérivé S. One will put aside the Credit insurance offered by particular finance companies.
Certain risks are the subject in addition of bets organized by the famous London bookmakers. They can indirectly allow the covering of very specific and little probabilized risks, but to which the balance of the settings of the Parieur S constitutes a Cote risk. Certain studies would have shown that this kind of bets, acting like a kind of Marché, would be sometimes more predictive than sophisticated forecasting studies.