Insurance can help cost and allocate risk.
Much of the public sector historically does not use commercial insurers, rather they self insure. This is because commercial insurance would not provide value for money for the government because the size and range of its business is so large that is does not need to spread its risk, while the value of claims is unlikely to exceed its premium payments.
The CPAM should include an estimate of the value of each uninsured risk, taking into account the likelihood of such costs arising. Where the government does use commercial insurance, the cost of premiums should be included in the CPAM analysis but care should be taken not to double count the risk insured.