A Captive Insurance Company, also known as a Private Insurance Company, is an insurance company that is owned and controlled by the same individuals or entities that own the business being insured. The captive generally covers the risk of the underlying businesses and their subsidiaries.
The structure and formation of a captive varies by the complexity of the organization. Accurate assessment and analysis is the key to a cost effective and efficient risk mitigation solution. This is usually accomplished by utilizing an in-depth feasibility study.
There are various options when deciding on the structure of a private insurance company. It is important to understand all aspects of your insurance needs in order to select the most effective option for your needs.
Each captive insurance company is an insurance company, and needs to be treated as such. It is essential to retain experts in their respective fields to manage a captive in order to conduct its operations.