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Surname1NameTutorCourseDateThe Swift Corporation has 5,000 sales representatives and employees in the United States whodrive company cars. The companys risk manager has recommended to the firms managementthat the company should implement a partial retention program for physical damage losses tocompany cars.1).Explain the advantages and disadvantages of a partial retention program to the SwiftCorporation.Partial retention is the act of an organization retaining some part of the risk and transferringthe remaining.Advantages of partial retention program to the swift corporation.Retained profits. This happens when the actual losses are less than the allowance allowedfor the loss by insurer.Insurable interest. The swift company will apply loss control measures on their propertyand thus reduce the premiums.Increased interests and cash flow. The less the premiums the more the cash flow in anorganization thus increasing the general profit of the company.Surname2Cover stability. The partial retention is more stable and gives the swift corporationaccurate knowledge of what their insurance cost will be. It helps them with properplannin ...


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