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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? – selfinsuranceprotect.co.uk
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.
Advantages
- 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.
Disadvantages
- 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.
Matthew.collins@ascendbrokingold.co.uk | Office: 01245 449061
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