Discussion question

Week 2 Question:

During a “hard” insurance market, a manufacturing company decided to self-insure its workers compensation loss exposure. The company hired a third party (TPA) to administer the workers compensation claims. Even though the risk was being self-insured, the risk manager insisted that the TPA maintain meticulous records. When asked why such detailed records were necessary, the risk manager replied, “So we have a good story to tell an insurance company next year.”.

What did the risk manager mean?

Dear,

The answer should be just five to six sentences. No longer than that.

Thank you