What does Captive Insurance Company mean? Read on to discover the definition & meaning of the term Captive Insurance Company - to help you better understand the language used in insurance policies.
Captive Insurance Company
A captive insurance company is a wholly owned and controlled subsidiary created by another corporation, known as its parent company, to insure itself against certain risks to which the parent company is exposed to. Aside from protecting the insured parent company and the parent company's clients against certain risks, a captive insurance company also benefits from the profitability of the captive insurer.
We hope the you have a better understanding of the meaning of Captive Insurance Company.