What is a reinsurance captive?
A reinsurance captive reinsures the risks insured by one or more fronting companies. The fronting company is a licensed, admitted insurer that issues insurance policies to the captive's parent company without the intention of assuming all (or any) of the risk. The risk of loss is then transferred to the captive through the reinsurance agreement.
What is a captive insurance company?
A captive is an insurance or reinsurance company set up exclusively to insure or reinsure the risks of the group to which it belongs. A captive insurer may operate as a direct insurer or a reinsurer. What Is a Direct Writing Captive?
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.