Which of the following is not an insurable risk?

Speculative risk is characterized by the potential for both gain and loss, which fundamentally distinguishes it from insurable risks. Insurable risks are generally pure risks that involve only the possibility of loss or damage without any potential for a financial gain.

In insurance, risks must be quantifiable, measurable, and unforeseeable to be insurable. They typically involve specific events like accidents or illness that result in a financial loss. Speculative risks, on the other hand, involve choices or investments where outcomes can lead to profit, such as investing in stocks or starting a business. Because of the potential for profit or loss, speculative risks are not suitable for traditional insurance coverage.

In contrast, pure risks, property risks, and health risks, represent situations where only a loss can occur, making them insurable. Each of these risks can be adequately assessed and managed by insurance companies through various policies.