Which of the following is NOT an element of insurable risk?

Insurance must be mandatory is not an element of insurable risk. For a risk to be insurable, it is not a requirement that individuals or entities must be mandated to purchase insurance. Instead, insurable risks typically involve voluntary participation where individuals or organizations choose to purchase insurance to protect against potential losses.

Insurable risks are characterized by several key elements. Risks that are due to chance involve situations that are unpredictable and occur randomly, making them suitable for insurance. Definite and measurable risks refer to situations where the loss can be quantified and identified clearly, such as in the case of a house fire or theft, making it easier for insurance companies to assess and underwrite the risk. Additionally, risks should not be catastrophic in nature, as catastrophic events could result in widespread claims that exceed the insurance provider’s ability to cover, thus making them uninsurable.

Therefore, the inclusion of "insurance must be mandatory" as a requirement does not align with the essential characteristics of insurable risk.