Captive insurance company,
Definition of Captive insurance company:
Companies that offer and sell insurance.
A wholly owned subsidiary of a company that provides insurance services to its parent company as well as its customers and parent company suppliers.
Property insurer is a wholly owned subsidiary that provides risk reduction services to its parents or a group of related companies. If the proprietary company cannot get an outside company for insurance against certain business risks, if the premium tax paid to the insurance company is the result of savings, or if the insurance provided is cheaper or provides better protection to the insurer have has. Main Company Business risk.
Property insurance is a form of auto insurance. When insurance companies set up a separate entity that provides financial benefits, the parent company has to take into account the general and administrative costs, ie the additional staff. There are also complex compliance issues. As a result, large companies form primarily proprietary insurance companies.
Meaning of Captive insurance company & Captive insurance company Definition