Retention ability

{
  "id": "MLC-T-INS-002929",
  "term": "Retention ability",
  "field": "Insurance and risk management",
  "definition": "An organization's financial capacity to absorb and pay for its own losses without relying on insurance. This capacity is determined by analyzing the firm's liquidity, cash flow, net worth, and overall financial stability. A firm's retention ability is a key factor in setting deductible levels and deciding which risks to self-insure versus which to transfer to an insurer.",
  "url": "https://mlchart.com/terminology/insurance/retention-ability/"
}