Captives

In its basic form, a captive insurance company is typically an insurance company established and owned by one or more non-insurance organizations to underwrite the risk(s) of their owner(s).

A captive can be owned by a single entity, by a number of unrelated companies from a particular industry (a homogeneous group captive), by a number of unrelated companies from different industries (a heterogeneous group captive) or by a trade or industry associations (an association captive) to insure the risks of the group owners or association.

The captive concept has been expanded over the years to include Insurance Agency Captives, Protected Cell Captive Insurers and Special Purpose Captives. Generally speaking, insured’s in Insurance Agency or Protected Cell Captives are participants, not owners of the captives.

Major Types of a Captive

The Benefits of a Captive Insurance Company

Key Captive Formation Steps

Create a Captive