Since the establishment of the first captive structure in the 1920s, the range of captive types has expanded to meet demands.
About 60% - 70% of captives today are single parent structured Captives. This is a wholly-owned Captive Insurance Company that acts as the insurer for it's parent company. It's primary mission is to underwrite all or a portion of the risk of the owner.
Instead of taking the traditional route of obtaining insurance through the marketplace, the parent company in simplest terms self-insures itself.
The parent provides the risk capital and premiums to the captive in return for the coverage.
In the event of a claim, the captive pays out to the parent.