Captive Insurer

A captive lets a large corporate formalise self-insurance: it pays premiums to its own wholly owned insurer, retains the underwriting profit, and can access the reinsurance market directly for catastrophic layers. Captives are common globally for big industrial groups managing property, liability and employee-benefit risks.

Captives are typically domiciled in jurisdictions with favourable regulation. India has only recently begun exploring an enabling framework for domestic captives; until then, Indian groups have used offshore captives. They suit organisations large enough to benefit from retaining and managing their own risk efficiently.