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The self-insurance of risk occurs with various facets. Self-retentions and proportional loss participation (or mixtures of those) are the most common means.

So-called finite-insurance concepts are another interesting means of self-insurance. Classical endowment life insurance is a special case of finite insurance with a profit participation at 100% level. In contrast to the portfolio approach underlying traditional insurance, diversification is here achieved along the time axis rather than within a risk community. In a 'non-life' context, finite-insurance particularly lends itself to the smoothing of (extreme) temporary volatility, which however, does not persist in the long-run.

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