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

An insurable risk is defined by specific characteristics that help insurers assess and manage potential losses. An essential aspect of insurable risks is that they should be predictable and controllable to some extent. Catastrophic events, such as natural disasters or large-scale accidents, generally present challenges to this definition because they can result in losses that are not easily quantifiable or predictable. Such events also potentially affect a large number of policyholders simultaneously, which can lead to significant financial instability for the insurer.

In contrast, accidental occurrences, definite and measurable risks, and economically feasible risks are all characteristics that make a risk insurable. Accidental occurrences imply that losses are unpredictable and happen by chance, which insurers can underwrite. Definite and measurable risks refer to the ability to specify and quantify the risk, allowing for accurate premiums to be calculated. Economically feasible risks denote that the potential loss must be manageable relative to the premiums collected, making it practical for insurers to provide coverage.

Thus, while catastrophic events can happen, they fall outside the realm of typical insurable risks due to the uncertainty and scale of potential loss, distinguishing them from the other characteristics that ensure a risk can be underwritten effectively.