What is a captive insurance company?
What is 'Captive Insurance Company'. A captive insurance company may form if the parent company cannot find an outside firm to insure them against particular business risks; if the premiums paid to the captive insurer creates tax savings; or if the insurance provided is more affordable or offers better coverage for the parent company's risks.
What is a group captive?
A group captive is formed by a group of individuals or entities that come together to jointly own a captive insurance company. Industrial insured group-owned captives typically insure only insureds in the same industry group, or with homogeneous risk, which creates group buying power and other risk management efficiencies.
What are the basic services of a captive finance company?
The basic services of a captive finance company include basic card services like a store credit card and full-scale banking. This can offer the parent company a significant source of profit and limit the amount of risk exposure .