Self-Insurer

An individual, partnership or corporation who retains all or part of its risk. Generally, it retains the first portion of the risk, up to the level it feels it can also absorb risks financially, and purchases Insurance over in excess of the retained or self-insured level to protect itself against catastrophic loss. See Also: “Risk management” and “Self-insured retention.”

Self-investment

The investment of the asset of an occupational pension scheme approved under Chapter I in employerrelated investment. A 5 per cent limit is imposed by PA95 and the IR imposes separate restrictions on self-investment by small self-administered schemes.

Self-Personal invested personal pensions (SIPPs)

Personal pensions that allow the individual to select where his contributions, within limits, should be invested. The investment opportunities include stocks and shares, unit and investment trusts, insurance company funds, deposit accounts and commercial property. Certain investments (e.g. works of art) are prohibited. Individuals must have net relevant earnings and will receive tax relief on contributions at the highest marginal rate. Group arrangements are common. SIPPs are offered by insurance companies and stockbrokers. See SELFINVESTMENT.