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Wholly owned subsidiary insurer
- A captive insurance company is a wholly owned subsidiary insurer that provides risk mitigation services for its parent company or related entities. The potential benefits of having a captive insurance company include lower insurance costs, tax advantages, underwriting profits, and greater control over coverage.
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Aug 6, 2023 · A captive insurance company is a wholly owned subsidiary insurer that provides risk mitigation services for its parent company or related entities. The potential benefits of having a captive...
- Julia Kagan
What Is Captive Insurance? A "captive insurer" is generally defined as an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits.
Captive insurance is an alternative to self-insurance in which a parent group or groups create a licensed insurance company to provide coverage for itself. The main purpose of doing so is to avoid using traditional commercial insurance companies, which have volatile pricing and may not meet the specific needs of the company.
Jan 31, 2024 · Captives are essentially a form of self-insurance whereby the insurer is owned wholly by the insured. They are typically established to meet the unique risk-management needs of the owners or members. Additionally, they provide potentially significant tax advantages, which can prove integral to longevity and company profitability.
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. Basically, captive...
Oct 17, 2022 · A captive is a self-insurance vehicle that can help companies keep a lid on rising insurance costs. It can also plug gaps in any risk cover left by today’s difficult insurance market – where premiums and deductibles are rising and companies retain more risk on their balance sheet.
Benefits of a captive include the ability to tailor coverage for hard to insure or emerging risks, apply alternative strategies to deal with insurance market cycles, provide financial incentives for loss control, offer flexibility in managing risk, offer creative insurance solutions, allocate costs to business units, and consolidate risk ...
