How can one describe the nature of an aleatory contract in terms of risk?

An aleatory contract is characterized by its inherent unequal distribution of risk between the parties involved. In such contracts, one party may end up losing significantly more than the other based on uncertain events. This type of contract is commonly found in insurance agreements, where the insurer collects premiums from many policyholders but only pays out claims to a few, depending on unpredictable circumstances like accidents or natural disasters.

In the context of an insurance policy, the insured pays a relatively small premium in exchange for the potential to receive a much larger payout if a covered event occurs. The insurer, therefore, assumes the risk and the financial burden of claims, which can vary significantly among policyholders. As a result, the nature of an aleatory contract reflects a situation in which one party (the insured) could be at a financial disadvantage or risk by contributing small, regular payments while having the possibility of receiving a substantial amount in return only if a specific event occurs.