Which type of risk is not insurable?

Speculative risk is the correct answer because it refers to the type of risk that is associated with the possibility of either gain or loss, which makes it fundamentally different from insurable risks. Insurable risks typically involve pure risks, which contain the potential for loss but no opportunity for gain; these are the risks that insurance policies are built to protect against.

In contrast, speculative risks—like investing in stocks or starting a business—carry the potential for both positive and negative outcomes. Since insurance is designed to provide financial protection against unforeseen losses, it does not cover situations where there is a possibility of profit.

Pure risk, financial risk, and systematic risk, on the other hand, are types of risks associated with potential losses that can be quantified and managed, which makes them insurable under standard insurance practices.