What Risks Cannot Be Insured?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Uninsurable Risks

  1. Market Risks: Fluctuations in markets or prices are typically uninsurable. For example, a drop in the stock market value.
  2. Catastrophic Risks: Events that cause widespread devastation, like wars or global pandemics, are often uninsurable due to their scale.
  3. Moral Hazards: Situations where the behavior of the insured might change due to the existence of insurance, such as reckless driving.
  4. Speculative Risks: Risks involving a chance of loss or gain, like gambling, are not insurable.
  5. Legal Constraints: Some risks are legally prohibited from being insured, like criminal activities.

Examples of Uninsurable Risks

Risk TypeExampleReason for Being Uninsurable
Market RiskStock Market LossesHigh unpredictability and external control
Catastrophic RiskNuclear WarScale and severity
Moral HazardReckless Behavior Post-InsuranceInsurance encourages risky behavior
Speculative RiskGambling LossesPotential for gain; not purely loss-based
Legal ConstraintsIllegal ActivitiesAgainst the law to insure


Understanding uninsurable risks helps in risk management and decision-making. These risks often require alternative strategies, like risk avoidance or mitigation. For a comprehensive understanding of how to navigate uninsurable risks, contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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