Are there Different Types of Captive Structures?
Yes. There are five different types of captive structures: Single Parent Captive, Group Captive, Association Captive, Agency Captive and Segregated Cell Captive.
What is a Single Parent Captive?
It is a captive that insures the risk of its parent company and other affiliated companies.
What is a Group Captive?
It is a captive that insures the common risk of a group of companies in the same industry.
What is an Association Captive?
It is a captive that insures the risk of members of associations such as ship owners, dentists, lawyers, doctors, tradesmen.
What is an Agency Captive?
It is a captive that is created by an insurance company to reinsure the insurance company’s insurance portfolio.
What is a Segregated Cell Captive?
It is captive that is divided into “cells” and each cell reinsures the risk of the shareholder of the cell. The shareholder of each individual cell is protected from the liabilities incurred by other cells in the captive.