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Captive Insurance

Summary

Captive insurance is a form of self-insurance where a company creates its own insurance company to cover its risks, instead of purchasing insurance from a third-party provider.

Detailed Description

Captive insurance refers to a specialized insurance company that is established by a parent organization to provide coverage for its own risks. This type of insurance allows the parent company to have greater control over its insurance programs and potential cost savings. Captives can be particularly useful for managing risks that are difficult to insure through traditional methods, offering tailored solutions to unique insurance needs.

Category
Insurance
Synonyms
captive
in-house insurance
group self-insurance
self-insurance
captive insurer

Impact Details

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Yirifi's stakeholder, regulatory-compliance, and risk-impact analysis for this term.

Manufacturing Firm

A manufacturing company creates a captive insurance company to manage risks associated with equipment breakdown and product liability.

Industries:

Manufacturing

Platforms:

Private Insurance Markets
Healthcare Provider

A healthcare organization establishes a captive to mitigate risks related to malpractice liabilities and employee health benefit claims.

Industries:

Healthcare

Platforms:

Insurance Exchanges
Construction Company

A construction company sets up a captive to handle risks associated with job site injuries and equipment loss.

Industries:

Construction

Platforms:

Proprietary Insurance Platforms

Top Metrics

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FAQs

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