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Risk retention is when a company decides to bear the financial impact of a potential loss itself, while risk transfer involves shifting the risk to another party through insurance or other financial arrangements. Risk retention allows a company to potentially save on insurance premiums but also exposes it to higher financial losses, while risk transfer helps mitigate potential losses by passing them onto another party.
Risk retention is a form of self-insurance. An organization sets aside a reserve fund to be able to offset unexpected claims.
Risk retention refers to the ability to accept risk and or can be referred to as risk taking, however self insured refers to a situation when someone is very much hopeful
It is excessive salt intake (sodium) which can place an individual at risk of fluid retention.
A Risk Retention Group is a type of insurance formed by members who associate specifically to form an insurance pool. Acceptable risk is the level of loss that such an association can handle and remain solvent.
no of policies renewed/no of potential renewal policies
Risk financing is any technique used to obtain funds to restore losses that strike an individual or entity. These techniques fall into three general categories Risk retention contractual transfer to non insurer in which legal liability is retained transfer to an insurer.
An insurance retention is the portion of an insurance claim paid by the insured instead of the insurance company. A deductible is a common example of a retention although there are other types of retentions. Retentions allow the insured to reduce insurance premiums whileassuming a portion of the risk being insured.
Retaining risk passively - Understanding the risk without taking any actions to prevent possible outcomes. Active retention - preparing for risk to happen, having plan for in case it would happen. Some form of self insurance (direct insurance would be form of transferring risk.)
planning proper staffing :- recruitment(qualified staffs), retention, training engagement letter internal control system
Liability insurance companies owned by their policyholders. Membership is limited to people in the same business or activity, which exposes them to similar liability risks. The purpose is to assume and spread liability exposure to group members and to provide an alternative risk financing mechanism for liability. These entities are formed under the Liability Risk Retention Act of 1986. Under law, risk retention groups are precluded from writing certain coverages, most notably property lines and workers' compensation. They predominately write medical malpractice, general liability, professional liability, products liability and excess liability coverages. They can be formed as a mutual or stock company, or a reciprocal.
You don't need to start an Insurance Company to Self Insure. Self Insurance is defined by the absence of an Insurance Company. A self Insurer simply retains the risk of a loss. If you have a group of individuals who are wanting to Self Insure then what you will Want to Start Is a "Risk Rentention Group". Risk retention Groups are licensed by your Local Insurance Regulating Authority. You should contact them regarding rules and regulations for "Risk Retention Groups".