A captive insurance company is an insurance company created and owned by one or more non-insurance companies, and typically is established to satisfy the risk-management needs of the owners. It is used as a form of self-insurance, and may cover a wide range of risks. A captive also may offer insurance cost savings and tax benefits. Accordingly, companies should consider whether a captive may make sense for their business.
Private Company Services, Mid-Central Region Team Leader, PwC US