Captive insurance

Captive insurance companies are insurance companies established by a parent group or groups with the specific objective of covering the risks to which the parent is exposed. Hence, the use of such companies constitutes a type of self-insurance, Captive insurance companies sometimes insure the risks of the group's customers. This is an alternative form of risk management that is becoming a more practical and popular means through which companies can protect themselves financially while having more control over how they are insured.