Rogers Capital: Captive Insurance
What is captive insurance?
A captive insurance company is a subsidiary of a non-insurance entity. It is a special purpose legal entity holding an insurance licence and has, as its primary objective, to insure either its holding company or a sister company for all or a proportion of its insurable risks. However, this is not the sole purpose of a captive. A captive can also be used to insure or reinsure the risks of third parties, such as customers, suppliers or subcontractors.
