What type of insurer is known for retaining risk?

Self insurers are individuals or businesses that choose to retain the risk of potential losses rather than transferring that risk to an insurance company. This means they set aside funds or assets to cover any potential claims or losses they may incur instead of purchasing an insurance policy. By doing so, they accept full responsibility for any losses, which can lead to cost savings if claims are lower than anticipated.

This method is often employed by larger organizations that can afford to manage their own risks and have a better understanding of their potential exposures. Self insurance can be advantageous because it provides greater control over the risk management process and potential cost savings on premiums.

In contrast, other types of insurers mentioned in the options typically involve a different approach to risk. Government insurance often provides coverage for certain risks but does so through a pooling mechanism that spreads risks among many participants. Reinsurers assume risk from primary insurers, thus not retaining the risks themselves. Assessment insurers are also different in that they can levy additional charges if claims exceed premiums collected, rather than retaining risks independently.