May 3, 2022

What are your self-insurance options?


What are your self-insurance options?

Self-insurance is one way businesses can maintain some control over their own risks, while still being able to purchase protection at higher entry levels when needed, through an insurer – at rates much lower than those offered by traditional programmes.


What can self-insurance programmes cover?

Almost any type of traditional insurance can be adopted to a self-insurance programme. The most common are:


What are the key 3 areas of self-insurance?

The first step to taking a self-insurance approach is to understand your exposure in the 3 core areas:

  • Your present risk management systems

  • Your present risk retention

  • The structure of your insurance programme

The below graphic demonstrates the 3 key areas. Insurance (risk transfer) is actually a smaller part of the overall hidden management costs.

By retaining more financial risk, adequate risk management controls will need to be in place.


What types of self-insurance are available?

There are 3 main types of self-insurance:

  • Higher excess levels

  • Aggregate excess

  • Captives

Read more here: What is Self-Insurance? –


 How do we approach setting up a self-insurance programme?

Retaining more risk, you will be able to control your risk management & claims management processes.


  • By controlling your risk and increasing your retention levels, you will lower your initial cost of insurance. The more risk you assume, the less you will pay in insurance premiums.

  • Managing claims can be more effective.

  • Insure in the manner you choose.

  • Self-insurance can motivate you to improve your risk management.



  • Investment in process, risk management and claims handling is needed.

  • Balance sheets will need to be robust enough to fund smaller losses.

Any questions? Please don’t hesitate to contact one of our team.  |  Office: 01245 449061