.Advantages Corporation is bound save more money. 4.

.Advantages

1.    The Corporation
is encouraged to embrace loss prevention

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2.    The firm
will notice an increase in their expense savings.

3.    With
actual losses below the
actual loss permitted within the insurerPS1 s3. premium, Swift Corporation is bound save more
money.

4.    Swift
Corporation will notice increase in cash flow as they have access to cash which
is typically held by the insured

Disadvantages

1.    loss allowance in the
insurance premiumPS2 1.  which1.     is
retained through non.      procuring
insurance may be1.  less than the losses retained by thePS3 1.     Swift Corporation, thus creating a huge1.instability
in the company’s loss history over   the       Long haul.

2.    Introduction
of loss prevention programs which insurer can provide at fair prices, because
the expenses may be higher than imagined.

 

 

 

1.    The
company tax aspects

2.    The
average frequency and the level of severity of the company losses.

3.    Consistency
of the losses

4.    The full
amount of losses to be retained by the company

5.    Extra cost
in relation to the retention of loss like administrative issues.

6.    The total
past losses incurred by the company.

7.    Confirm
incase the management of Swift Corporation are risk averse

 

There different methods Swift Corporation can use to
pay up for the physical damages. The company can approach a captive insurer to
help in this case. Another option is to pay out from the current net incomes of
the company. Borrowing funds from commercial lenders is also an option Swift
Corporation may take into account when trying to find solution to these
problems.

 

 

 

4

1.    Swift
Corporation should avoid employing drivers with tainted driving experiences
with history of poor driving skills and accidents

2.    The
company needs to go level higher by ensuring all drivers undergo through a
defensive driving course to reduce the losses and physical damages.