Many insurance professionals believe the next hard market may be lurking right around the corner. Historically in hard markets, self-insurance has been used as a risk financing mechanism to offset higher insurance prices and the lack of capacity. But as Richard Frese, a consulting actuary with Milliman, points out in a online exclusive article in Risk Management, before turning to their self-insured program, risk managers need to make sure it is performing properly and creating the maximum value for their organizations. In order to do so, certain key questions need to be asked:

• What types of items should a risk manager reevaluate?
• How often should these items be reviewed?
• What steps can be taken to guarantee an optimal functioning self-insurance mechanism?
• Will the actions of today best match the needs of the future?
• How does a risk manager know the decisions are correct?
• What can be done to reduce future insurance costs?

For answers to these important questions and more, check out this informative article, only on RMmagazine.com.