What is a captive insurance company and how does it work?
What is a Captive Insurance Company? According to the recent white paper from the Insurance Information Institute (Triple-I) — A Comprehensive Evaluation of the Member-Owned Group Captive Option — a captive insurance company is: An insurance subsidiary formed to provide risk mitigation services to its parent company.
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.
Who are the major participants in a captive insurance program?
Here’s an overview of the major participants in a captive insurance program: Insured: Works with its insurance broker to find a captive that fits the company’s needs. Broker: A trusted advisor that supports the insured on a regular basis.