Principles of insurance

From the perspective of the insurer There are four general criteria for deciding whether to insure events.
1. There must be a greater number of similar objects so the financial result of the insurance pool exposure is predictable. Therefore, they can calculate a premium.
2. The loss must be inferred from the standpoint of the insured.
3. The loss must be measurable, identifiable in location, time and be ready. They also want to losses cause financial problems. This means that the insured has an interest to protect and preserve the property to minimize the probability of loss.
4. The potential loss to the insurer must be non-catastrophic. He can not put the insurance company in financial peril. Losses must be uncertain.