Captive Insurance Company Adalah. A captive insurer is a legal entity formed primarily to insure the risks of one corporate parent company, or a number of affiliates, thereby reducing the parent company’s total cost of risk. Captive insurance is insurance or reinsurance provided by a company that is formed primarily to cover the assets and risks of its parent company or companies.
Over 80% of fortune 500 companies employ of some type of captive insurance company arrangement. There are now over 6,000 captive insurers worldwide. Captive insurance companies have been in existence for over 100 years.