What happens to the insurability of a loss as it becomes more unpredictable?

As losses become more unpredictable, they generally become less insurable. Insurance is fundamentally based on the ability to predict and quantify risk. When a loss is unpredictable, it poses a higher degree of uncertainty for insurers, making it difficult to assess the likelihood of occurrence and to set appropriate premiums. Thus, risk becomes more difficult to manage when its predictability diminishes. Consequently, losses that are highly unpredictable may not be insurable at all or may be significantly more expensive to insure due to the increased risk assumed by the insurer.

In this context, insurability relies heavily on measurable risks and statistical data; therefore, as unpredictability increases, the likelihood and feasibility of insuring such risks diminish.