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  2. 5 days ago · A captive insurance company is a wholly-owned subsidiary that provides risk mitigation services for its parent company or related entities. The potential benefits of...

    • Julia Kagan
  3. 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.

  4. Jul 1, 2021 · To begin with, it is essential to define terms. What is a captive insurance company? In the most simplistic terms, a captive insurance company is an insurance subsidiary of a noninsurance entity or parent and is owned by the insured.

  5. 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.

  6. 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.

  7. Nov 20, 2019 · A captive issues policies, processes claims, follows all applicable regulations, files a property and casualty insurance company income tax return, and has profits, if profitable, available to the insurance company owners.

  8. What is a Captive Insurance Company? A captive insurance company is a C-Corporation (or a legal entity taxed as a C-Corporation) created for the purpose of writing property and casualty insurance to a relatively small group of insureds.

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