What is a Captive?
strategy | innovation | expertiseA captive is an insurance company formed to insure or reinsure the risks of its parent corporation. In all, almost 6,000 captives serve their parents’ risk financing needs around the world, and this number is growing steadily.
A captive can operate as a direct insurance company, issuing policies to subsidiaries in a group, or it may serve as a reinsurance company, assuming risks behind commercial insurers.
Captives traditionally underwrite property & casualty risks, but to an increasing extent are also involved in life assurance and employee benefit schemes.