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Compare the risk of fire with the risk of war in terms of how well they...

Compare the risk of fire with the risk of war in terms of how well they meet the requirements of an ideally insurable risk.


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Abdul-Rahim Taysir

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Expert Solution

Risk of war is against loss which can arise out of war and these risks are measurable so these risk associated with the insurance can be lethal for the company because this can lead to payment of the company to such extent which cannot be easily borne by the company because these are highly hefty sum of money.

risk of fire is a more common type of insurance which can be measurable because risk of fire is easily estimated and it is a common type of insurance so risk of fire cannot trigger the insolvency of an insurance company but risk of war can be triggering the insolvency of an insurance company if it is not properly estimating the damages in advance.

Risk of war is generally too high and it cannot be measurable easily but risk of fire is measurable easily

risk of what is highly impractical concept and it is only provided by few company where as risk of fire is provided by many companies.

risk of war is not an ideal measurable insurance whereas risk of fire is an ideal measurable insurance.

jeff jeffy answered 1 year ago
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