Meaning of the word self-insurance in English

What does self-insurance mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

self-insurance

US /ˌself.ɪnˈʃʊr.əns/
UK /ˌself.ɪnˈʃʊə.rəns/
"self-insurance" picture

Noun

a system in which a business or individual assumes financial responsibility for their own risks, rather than transferring them to an insurance company

Example:
Many large corporations opt for self-insurance to manage their employee health benefits.
The company decided to switch to self-insurance to reduce premium costs.