By retaining risk and setting aside funds to cover potential losses, these institutions gain greater control over their insurance programs. This model not only offers potential cost savings but also allows for more tailored coverage options that align with the unique needs of educational environments.

For instance, Shawnee State University in Ohio explored the formation of a joint self-insurance consortium with several other colleges to reduce healthcare costs and enhance coverage flexibility. This collaborative approach exemplifies how institutions can pool resources to achieve economies of scale while maintaining control over their insurance programs.