Types of Insurance Financing Vehicles

* Protected self-insurance is a mechanism for alternative financing risks in an organization that keeps mathematically calculated the cost of risk within the organisation and transfer of catastrophic risks with clear and comprehensive to an insurer so that the maximum total cost of the program is known. A well-designed and self-underwritten Protected Insurance Program reduces and stabilizes the cost of insurance and risk management provides valuable information.
Retrospectively Rated * Insurance is a method of establishing a premium on large commercial accounts. The final premium is based on the actual loss of the insured during the period of the experiment, sometimes subject to a minimum and maximum premium, with the final premium determined by a formula. According to the plan, the current year, the premium is based partly (or wholly) to the current year, losses, although the premium adjustments can take months or years beyond the year course, the expiration date. The rating formula is guaranteed in the contract of insurance. Formula: Retrospective premium converted loss = + × basic premium tax ratio. Many variations of this approach have been developed and are in use.
* Fraternal insurance is provided on a cooperative basis by fraternal benefit societies or other social organizations. [9]
* Formal auto insurance is the deliberate choice to pay for the losses insurable otherwise out of his own money. This can be done on a formal basis by setting up a separate fund in which the money is deposited on a periodic basis, or simply by refraining from buying insurance and the willingness to pay from their own pockets. Auto insurance is usually used to pay high-frequency, low-severity losses. These losses, if they are covered by insurance conventional means having to pay a premium, which includes expenses of the company, overhead, the cost of implementation of the policy on the books, acquisition costs, taxes on premiums, and contingencies. Although this is true for all insured for small, frequent losses transaction costs may exceed the benefits of reducing the volatility that any other offer insurance.
* No-fault insurance is a type of insurance policy (generally of auto insurance), where policyholders are compensated by their insurer no-fault in the incident.
* Reinsurance is a type of insurance purchased by insurance companies or self-insured employers to protect against unexpected losses. Financial Reinsurance is a form of reinsurance that is used primary for capital management rather than transfer insurance risk.
* Stop-loss insurance offers protection against catastrophic loss and unpredictable. It was purchased by the agencies who do not want to assume 100% of the liability for losses arising from these plans. Under a stop-loss policy, the insurance company becomes liable for losses that exceed certain limits called franchises.
* Social insurance can be many things to many people in many countries. But a summary of the main thing is that this is a collection of insurance (including components of life insurance, disability insurance, unemployment insurance, health insurance, and others), as well as retirement savings, that mandates the participation of all citizens. By forcing everyone in society to be a policy and pay the premiums, it ensures that everyone can become a complainant when or if he / she needs to. En route, it inevitably becomes associated with other concepts such as the judiciary and the welfare state. It is a large and complex topic that generates considerable debate, which can be studied further in the following articles (and others):
On the provision of welfare
O Social Security
O social safety net
O National Insurance
On Social Security (United States)
Debate on Social Security (United States)