The Basics

Described often as "pure" captives, these are companies with a single owner to whom they provede insurance coverage.

Captive formed by members of an industry to provide insurance for it's members.

Industry captives are owned by organizations within the same industry that have joined together to solve a specific insurance issue.

A risk retention group (RRG) is a captive insurance company owned by multiple businesses with similar insurance needs.

Captive insurance company structured to allow a legal segregation of underwriting accounts from each other

Formed by investors to provide captive insurance to organizations that want the advantages of captive, but either do not or cannot form one on their own.

Captives formed by insurance brokers.  They allow the broker-owners to invest in low risk portions of their book of business.

Special Purpose Vehicles or SPVs, are reinsurers used by other insureters to securitize risk.  Reinsurance contracts are issued to the parent insurers and then they sell the risk on capital markets.