MLchartDataset catalogue

Informal retention

Term · Insurance and risk management · MLC-T-INS-001827

The practice of absorbing losses as they occur without a formal plan or dedicated funding mechanism, such as a captive insurer or a funded self-insurance program. A business using this method treats unpredictable losses as current expenses, essentially paying for them out of cash flow. This approach contrasts with formal retention, where a specific fund is established and managed to pay for expected losses.

Table 1. Record
IdentifierMLC-T-INS-001827
FieldInsurance and risk management
Record as JSON 
{
  "id": "MLC-T-INS-001827",
  "term": "Informal retention",
  "field": "Insurance and risk management",
  "definition": "The practice of absorbing losses as they occur without a formal plan or dedicated funding mechanism, such as a captive insurer or a funded self-insurance program. A business using this method treats unpredictable losses as current expenses, essentially paying for them out of cash flow. This approach contrasts with formal retention, where a specific fund is established and managed to pay for expected losses.",
  "url": "https://mlchart.com/terminology/insurance/informal-retention/"
}

Record 1,735 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.