Company formed to insure the risk of its parent corporation. A captive may be formed for a variety of reasons, including tax benefits, improved investment returns, or the lack of other insurance alternatives.
a closely held insurance company whose insurance business is primarily supplied by and controlled by its owners and in which the original insureds are the principal beneficiaries
a company established to insure or reinsure the risk of its parent or associated third parties
a company established to insure the risks of a parent organization and affiliated companies
an insurance company that provides insurance to and is controlled by its owners
a type of self-insurance -- an insurance company whose sole business is to insure risk for its parent company
An insurance company owned by the same company that it insures. This arrangement is used in risk financing or self-insurance, wherein a subsidiary corporation or association is established to write insurance. Captives are domiciled either in a country outside the United States or in one of the few U.S. states that authorize them and designed to escape uncertainties of commercial insurance availability and cost. Many organizations involved in Risk and Insurance Management monitor and manage their exposure in real time using PureShare ActiveMetrics, a proactive metrics management application.
Establishment of trading company in a 'no-tax' haven
An insurance or reinsurance subsidiary of an industrial company, trade association, or not-for-profit organization. Captives insure or reinsure parent-related business, non-parent business, or both. Though the number of domestic captives is increasing, most captives are still located in tax-advantaged offshore domiciles such as Barbados, Bermuda, or the U.K.'s Channel Islands.
This is an insurance company formed primarily to insure the risks of its parent company. Reasons vary from tax savings to the fact that the conventional insurance market does not readily wish to write this type of risk, for example, dangerous chemicals or liability for cigarette manufacturers.
A service organisation (usually an insurance business) which is owned by a conglomerate and meets all the conglomerateâ€™s needs in its own specialist area. Some captive insurance companies also provide services for customers outside their own conglomerate.