Who is considered a self-insurer?

A self-insurer is defined as an individual or organization that assumes financial risks on their own rather than transferring that risk to an insurance company through a formal insurance policy. This means that self-insurers set aside funds to cover potential losses or liabilities that would typically be handled by an insurance provider. This approach may be more cost-effective for larger entities that have the financial stability to absorb losses.

Choosing this option emphasizes the act of accepting the financial responsibility directly, distinguishing the self-insured from those who rely on traditional insurance methods to mitigate risk.

The other choices represent various aspects of the insurance ecosystem but do not align with the concept of self-insurance. For instance, a cooperative insurance scheme involves pooling resources among multiple participants to create a shared insurance fund, while a policyholder seeking additional coverage still relies on an insurance company for protection. A regulatory body focuses on the governance and oversight of insurance practices rather than taking on any financial risk themselves.