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Feb 15, 2024 · A captive insurance company is a wholly-owned subsidiary company created to provide insurance to a noninsurance parent company and its affiliates or to an association.
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According to Business Insurance, there are 30 captive domiciles in the U.S., including 29 states and the District of Columbia. Captives by State, 2022-2023 Rank
May 9, 2024 · Captives are formed to cover a wide range of risks; practically every risk underwritten by a commercial insurer can be provided by a captive. The type of entity forming a captive varies from a major multinational corporation—approximately 90% of Fortune 500 companies have captive subsidiaries—to nonprofit organizations.
As a result, companies in sectors as diverse as construction, healthcare and finance are exploring single parent captive programs to meet their risk management needs. The captive insurance market has proven to be an increasingly viable alternative to traditional lines of insurance in 2021, and is poised to continue growing throughout 2022.
Today, there are over 7,000 captives worldwide, according to AM Best Captive Center. How are captive insurance companies regulated? A captive insurance firm must be licensed in each state in which it does business or must use a fronting insurer to do business across state lines.
At its core, a captive insurance company is a risk-financing tool. It places more risk-management control and financial control into the hands of the owner of the captive than exists in a typical commercial insurer-insured relationship.
5 days ago · A captive insurance company (or captive) is formed, owned, and controlled by the parent company that it insures. The National Association of Insurance Commissioners (NAIC) estimates that about...
