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 the difference between a pure captive and group captive?
A Pure Captive is an insurance company established by the parent (generally into non-insurance business) organization to provide insurance cover to itself or its subsidiary or affiliated organizations. Group Captives are those formed by a group of companies for providing insurance cover for controlling their respective and collective risk.
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.