Self-insurance is what type of risk management

Self-insurance is a method in risk management in which a company or person sets aside a sum of money so they can use it to mitigate an unexpected loss. By principle, one can self-insure against any type of damage, such as flood or fire.

What type of risk is self-insurance?

Self-insure is a risk management technique in which a company or individual sets aside a pool of money to be used to remedy an unexpected loss.

Under Which type of risk strategy does self insuring fall?

In the United States, self-insurance applies especially to health insurance and may involve, for example, an employer providing certain benefits—like health benefits or disability benefits—to employees and funding claims from a specified pool of assets rather than through an insurance company.

What is an example of self-insurance?

Being self-insured means that rather than paying an insurance company to pay medical, dental and vision claims, we pay the claims ourselves, using a third-party administrator to process the claims on our behalf.