Is It Possible For An Insurance Company To Insure Itself?

[Bisolami]

Having an insurance company is no longer a hidden thing. Well, it has never been hidden but it is just that we hardly find them outside like we used to. It was hard to process your car, health, or business insurance but now, it is very easy. You can get it done within the twinkle of an eye. Also, some of these insurance companies are so wise that they have mobile applications where people can register and insure whatever they want to insure.

Also, we all know that having a business is a risk. There may also be some things that will happen at the business location. Sometimes, businesses experience robbery, fire outbreaks, floods or erosion and so many more. I'm sure you know that this can as well happen to an insurance company. It is possible for it to happen to them in their offices or whatever space they she.

If such a thing happens to an insurance company, who will insure the company? Or is there an insurance company that helps to insure insurance companies? This is a question that I have always been asking myself. Is it possible for an insurance company to insure itself or they are being insured by other insurance companies?

 

[saoussen5765]

There is an insurance company for insurance companies means these companies insure themselves by the medium of this company, this is what I think because an insurance company couldn't ensure himself.

 

[Knowlopedia]

Yes, it is possible for an insurance company to insure itself. The concept is known as "self-insurance". Self-insurance is when an individual , a business, or an insurance company sets aside funds in order to protect itself from losses. This is done by paying for losses out of the funds set aside as opposed to obtaining insurance from an external provider . Self-insurance is often used by companies that have limited financial resources or a high degree of risk . It can be an effective way for a company to manage its own risk and save money in the process.