Which administrative activities are commonly required by firms that self‑insure?

• A. Marketing campaigns
• B. Claim settlements, return to work programs & wellness programs
• C. Compliance audits
• D. Training and development

Answer: (B)

Self-insurance means the company bears the financial risk and must run the program itself. The core admin tasks then are those that directly manage losses and keep employees healthy and able to work. Handling claim settlements is essential because you determine how losses are resolved and paid, which directly affects costs. Coordinating return-to-work programs helps minimize time off and productivity loss, further controlling the financial impact of claims. Implementing wellness programs supports employee health and can reduce the frequency and severity of injuries over time. Together, these elements form the practical administrative backbone of a self-insured program.

Marketing campaigns don’t play a role in managing risk or administering self-insurance. Training and development, while beneficial for overall operations, isn’t specific to administering a self-insurance program. Compliance audits are important for governance, but the most direct administrative activities tied to self-insurance are claims management, return-to-work processes, and wellness initiatives.