It is good to know that not all risk can be hedged. As mentioned above, the risk must be plausible and realistic,
but not defined in time and space (otherwise the insurance company will be doomed to go bankrupt
(Can not afford to compensate all losses), or have to ask the size of insurance premiums, which are not
attractive to the consumer).

However, the risks are quite often occur (large enough to
uniform number of cases), the insurance company would be able to accurately calculate the insured event
and the likelihood of the insurer to offer a lower price (the less precise statistics, the
greater risk for potential insurance benefit insurance company has, the more money
amount of potential payment of the insurance company forced to book a room at the higher insurance
deposit insurer is obliged to offer).

Risks associated with the frequency distribution of insurance risk – the more common risks, the more insurers; the greater the reserve may be accumulated to suggest a lower insurance premium. In addition, insurance companies can insure only those risks that can be objectively the cash (financial risk). If the loss rate depends on the insured person’s inner relation to the loss of property (e.g., a family relic, personal sympathy, emotion), the prohibition may be not be feasible or possible damage to the amount or method of calculating the objective criteria must be clearly specified in the insurance contract.

The insurance company can not insure the public interest, contrary to mandatory (overriding) the statutory requirements and public policy. Otherwise, it would does not ensure compliance with the mandatory rules of law, because the potential offender should ban
backing and follow them, or even deliberately them. Linked to this is one of the most important
insurance contract elements – security interest in the presence of a very simple explanation
would be to insure that only what is yours. Thus, the insurance can not afford to take advantage
for foreign disasters, such as. can not be insured for the benefit of their neighbor’s house on fire, can not be
its insured for the benefit of another person’s life (with certain exceptions), etc.  This limitation is
to avoid possible abuses, attacks on property or life.