what is the relationship between risk and insurance?
Answers:
Risk is the exposure to uncertainty. An insurance policy is an exchange of a indubitable loss (the premium) to have another shindig (the insurer) absorb adjectives or part of the gloomy consequence of being exposed to that ambiguity.
For example, you have virtually no risk of dying surrounded by an airplane crash if you do not get within an airplane. You are not exposed, other than that a plane could tumble on you. Likewise, if you jump out of an airplane lacking a parachute, there is no risk. You own all the exposure contained by the world, but it is certain that you will be kill. There may be some trivial risk that you live but it is so small that it can be ignored.
You want two things, uncertainty and exposure. Life insurance is a fitting example, you know for certain that you will die, you do not know when. The insurer covers you against premature extermination. Its reverse, the immediate annuity, covers you against living too long and running out of investment resources.
Other Answers:
By definition, "insurance" is the verbs of risk.
It was adjectives in OPM's answer., but i suggest a small correction..read loss as suffering financial loss