Which of the following is NOT a characteristic of an insurable risk?

An insurable risk is defined by several characteristics that ensure it can be effectively managed by an insurance company. Among these characteristics, the principle that losses resulting from the risk should not lead to catastrophic outcomes is crucial.

When evaluating insurable risks, they typically should feature a predictable nature, where losses are likely to occur within a certain threshold and do not involve extreme or catastrophic events that can overwhelm an insurer's capacity. While insurance is designed to protect against unforeseen events, high losses that could result in catastrophic outcomes can lead to significant financial strain for insurers. Therefore, risks are more insurable when they fall within a manageable range rather than pose a threat of catastrophic loss.

Additionally, other characteristics of an insurable risk include that losses must be measurable, allowing for accurate assessment and compensation when losses occur, and that losses should be accidental and unintended, fitting into the realm of what insurance is meant to cover—unexpected incidents, rather than predictable or highly catastrophic scenarios. The requirement for low probability of loss generally means that while it is not expected to happen frequently, it must remain within economic feasibility for insurability.