Limited Risk

Limited risk of catastrophically massive losses:

Insurable losses square measure ideally freelance and non-catastrophic, which means that the losses don't happen all promptly and individual losses don't seem to be severe enough to bankrupt the insurer; insurers might value more highly to limit their exposure to a loss from one event to some little portion of their capital base. Capital constrain insurer ability to sell earthquake insurance in addition as wind insurance in cyclone zones. In the US, flood risk is insured by the central. In industrial insurance, it's potential to seek out single properties whose total exposed worth is well in more than anyone insurer's capital constraint. Such properties square measure typically shared among many insurers, or square measure insured by one nondepository financial institution World Health Organization syndicates the danger into the insurance market.