Which of the following describes insurable losses?

Insurable losses are defined by several key characteristics that ensure the risk can be effectively managed by an insurance policy. The correct selection highlights that insurable losses must be economic, predictable, accidental, measurable, and non-catastrophic.

Economic losses refer to quantifiable financial impacts that can arise from events such as theft, property damage, or liability claims, ensuring that the losses have a tangible financial basis. Predictability is crucial, as insurers base their pricing and reserve strategies on statistical data to estimate the likelihood of such events occurring. Accidental losses occur unexpectedly, which distinguishes these losses from those that are intentional or controlled. Measurable means that the losses can be quantified in economic terms, allowing for an accurate assessment and compensation. Non-catastrophic indicates that while significant events may be covered, they should not be so widespread that they threaten the viability of the insurance pool, making it easier for the insurer to manage risk.

By meeting these criteria, insurable losses ensure that both the insurer and the insured can navigate the financial implications effectively, adhering to the principles of risk management within the insurance industry.