A captive insurance company is an insurance company that is owned as a subsidiary by the parent company. The captive typically exists to provide insurance only to other subsidiary businesses owned by a common parent. The idea is that by using the captive, the parent will retain the insurance underwriting profits that would otherwise have been lost to third-party commercial insurers.
A captive insurance company is an insurance company that is owned as a subsidiary by the parent company. The captive typically exists to provide insurance only to other subsidiary businesses owned by a common parent. The idea is that by using the captive, the parent will retain the insurance underwriting profits that would otherwise have been lost to third-party commercial insurers.
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