A.M. Best Company, a credit rating and financial data and services company operating in the insurance industry, will be sponsoring the 31st Annual Self-Insurance Institute of America’s National Education Conference and Expo. The conference will be held between October 9 and 11 of this year in Phoenix, Arizona. The annual event attempts to broaden the knowledge of self-insurance within the insurance industry as a whole. This year, the event will be focused around the future of self-insurance and how the marketplace is being shaped by new trends.
Self-insurance is a risk management method used throughout the insurance industry. Many companies make use of this method in order to mitigate the effects of potential losses in the future. These losses can come from a variety of factures, which makes the total risk difficult to gauge. The self-insurance method allows companies to set aside large sums of money in an effort to offset the risk of loss.
This form of risk management is sometimes seen as not specific enough for some insurers, but has been growing in popularity amongst large insurance corporations. The recent storms in the U.S. are likely to renew interest in self-insurance amongst companies not already investing in this form of risk management. A.M. Best supports self-insurance as an adequate way to protect insurers from unforeseeable losses due to natural disasters or other such calamities.