Chapter · January 998 doi: 10. 1007/978-1-4615-6187-3 10 citations reads 2,488 author: Some of the authors of this publication are also working on these related projects

Most Important Factors Affecting the Self-Insurance Decision

 

(Maximum score is 100) 

 

 

Financial capacity to withstand losses 

89 

 

Qualified personnel to administer the program 

55 

 

Emphasis on in-house loss prevention program 

51 

 

Geographic or similar dispersion of risks 

50 

 

Tying up funds in commercial premiums or deposits 

48 

 

Loading included in commercial premiums 

37 

 

Other factors affecting your profitability 

36 

 

Non-affordability of commercial insurance 

30 

 

Predisposition of top management 

26 

 

Non-deductibility for tax purposes of self insurance 

25 

 

Non-availability of commercial insurance 

21 

 

 

 

Note: The score index  has been computed by utilizing the results presented 

 

    in Conder and Hopkins ( 1981, p. 27) 

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