self-insurance
UK[ˌself ɪnˈʃʊərəns]US[ˌself ɪnˈʃʊrəns]
n
The practice of setting aside money or assets to cover potential losses, rather than purchasing a policy from a commercial insurance company.
n
A fund or reserve maintained by an organization for this purpose.
Morpheme Breakdown
self
insurance
self
prefix
insurance
noun
Etymology
The term is a modern English compound, formed by combining the native English prefix 'self-' with the noun 'insurance'. 'Self-' derives from the Old English reflexive pronoun, carrying the core meaning of "by or for oneself." 'Insurance' entered English via Old French from the Latin verb securus, meaning "free from care" or "secure." The compound 'self-insurance' logically emerged in the financial and risk management lexicon to describe a method where an entity internally assumes its own risk, creating its own security rather than transferring it to an external insurer. It thus represents a conceptual blend of autonomy ('self-') and the established practice of financial protection ('insurance').
Analysis
Structure: self (prefix) + insurance (noun)
self: Old English, from Proto-Germanic. A prefix meaning "of, to, or by oneself or itself."
insurance: English, from Old French ensurer, based on Latin securus ("secure"). A noun meaning "the act, system, or business of providing financial protection against loss or harm."
Examples
Large corporations often use self-insurance for predictable risks like employee health benefits.
Setting up a self-insurance fund requires careful financial planning and risk assessment.
For a small business, the decision between traditional coverage and self-insurance depends on cash flow and risk tolerance.