FINAL ACTIVITY

Based on your readings on Insurance, write an essay on the following:

Self-insurance:
▪ Define what is self-insurance is all about?
-Self insurance is a strategy which the business goes a third party
insurance policy that is in favor of independently setting aside funds to
cover unexpected claims that may arise down the road. It can also be
used against virtually any type of potential damage or loss. But it is not
always advisable.
▪ Cite the reasons why companies resort to self-insurance?
The reasons why companies resort to self-insurance are Saving Money
so that they can save on non-claims expenses and they can meet the
needs of their employees, so they can be more aware of their risks and
they need to analyze their risks and how much money can be saved for
the future.
▪ Is it effective and cost-efficient?
-Yes, because they can save money for the future and also they can
expand the needs of their company and employees.
▪ Is it really insurance or just a ploy to cover cost of future damages?
-It is really insurance.
▪ Would recommend self-insurance if you own a company?
-Yes because I can expand more plans and at the same time save
money for more investments and I can build a sustainable environment
in my company and at the same time at the workplace
Insurance in Handling Risk
▪ What the advantages of having insurance in handling risk
-The advantages of having insurance in handling risk are having
Continuity in operations after the setbacks, having permits lengthening
of planning horizons and it Allows the firm to accept more uncertainties
in other areas.
▪ What are the disadvantages of having insurance in handling risks?
-The disadvantages of having insurance in handling risks are having Lax
attitude toward loss control of insured events is likely to increase the
incidence of non-insured events, Having exaggeration or false reporting
of insured claims

▪ In your opinion, which one outweighs the other? Advantages or

disadvantages
-The Disadvantages because it can affect your company and you need
to make sure that these disadvantages does not happen or you need to
plan it right.