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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?
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