A company retains a risk in its own books and sets aside a provision for the potential future loss (a risk is retained, but a calculated amount of money is set aside to compensate for the potential future loss). In this way, one saves on the insurance premium, and in some cases self-insurance is also worthwhile for accounting and tax reasons. – See self-insurance, deductible, insurance.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/