What term describes a person developing a formal program to identify, evaluate, and fund its losses?

The correct answer is self-insuring because this term involves a systematic approach where an entity takes on the financial risk of losses instead of transferring that risk to an insurance company. When a person or organization decides to self-insure, they create a formal program that encompasses identifying potential risks, evaluating the likelihood and potential severity of those risks, and making financial arrangements to cover any losses that occur. This may involve setting aside funds specifically dedicated to loss coverage or establishing a reserve to manage risk effectively.

The other terms relate to different aspects of insurance and risk management but do not specifically describe the process of creating a formal program for loss identification, evaluation, and funding. For instance, Lloyd's Association is a market where insurance buyers and sellers come together, purchasing groups are cooperative arrangements for buying insurance, and mutual holding companies relate to the structure of insurance companies but do not cover the self-insuring concept directly.