Unfunded self-insurance

Term · Insurance and risk management · MLC-T-INS-003427

A risk financing strategy where an organization retains its own risks without setting aside specific assets or funds to cover potential losses. Instead, losses are paid out of current operating revenues as they occur. This approach relies on the organization's financial strength and liquidity to absorb unexpected claims, differing from funded self-insurance which segregates assets for this purpose.

Table 1. Record
Identifier	MLC-T-INS-003427
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-003427",
  "term": "Unfunded self-insurance",
  "field": "Insurance and risk management",
  "definition": "A risk financing strategy where an organization retains its own risks without setting aside specific assets or funds to cover potential losses. Instead, losses are paid out of current operating revenues as they occur. This approach relies on the organization's financial strength and liquidity to absorb unexpected claims, differing from funded self-insurance which segregates assets for this purpose.",
  "url": "https://mlchart.com/terminology/insurance/unfunded-self-insurance/"
}

Record 3,566 of 3,748 in Insurance and risk management terminology (MLC-0106). Request the full dataset.