Funded self-insurance

{
  "id": "MLC-T-INS-001616",
  "term": "Funded self-insurance",
  "field": "Insurance and risk management",
  "definition": "A risk management approach where an organization formally sets aside financial assets in a dedicated fund to cover its own anticipated losses, rather than transferring the risk to an external insurer. This method provides a structured way to finance predictable and manageable risks. The fund's assets are typically invested to generate returns and offset future claim payments.",
  "url": "https://mlchart.com/terminology/insurance/funded-self-insurance/"
}