What is self-insurance primarily aimed at?

Self-insurance is primarily aimed at setting aside funds for potential losses. This approach involves an individual or organization retaining the risk instead of transferring it to an insurance company. By establishing a reserve or a dedicated fund, the entity prepares to cover losses that may occur, thereby gaining more control over their risk management process. This method can be particularly cost-effective for those who can accurately predict their potential claims and manage risks effectively.

The other options highlight concepts that are not aligned with the primary purpose of self-insurance. For example, the notion of a legal obligation to purchase insurance does not apply to self-insurance, as it represents a choice, not a requirement. Similarly, relying solely on external insurance providers contrasts with the self-insurance strategy, which involves internal financial management of risks. Lastly, while addressing all risks is desirable, self-insurance does not guarantee coverage against every possible risk, as it is contingent on the funds set aside and the entity's capacity to absorb certain risks.