What is a defining characteristic of a group captive?

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Multiple Choice

What is a defining characteristic of a group captive?

A group captive is owned by several related companies within a corporate group and insures the risks of those member companies. The defining feature is that the coverage applies to multiple group members, not just a single company. This setup lets the group retain more of its own risk and often tailor coverage and pricing to the group’s specific needs. It differs from a single-parent captive, which insures only one parent company and its affiliates. Location isn’t the defining factor—captives can be onshore or offshore—so “operates only offshore” isn’t what distinguishes a group captive. And these captives are aimed at corporate risks, not selling insurance to individuals.

A group captive is owned by several related companies within a corporate group and insures the risks of those member companies. The defining feature is that the coverage applies to multiple group members, not just a single company. This setup lets the group retain more of its own risk and often tailor coverage and pricing to the group’s specific needs. It differs from a single-parent captive, which insures only one parent company and its affiliates. Location isn’t the defining factor—captives can be onshore or offshore—so “operates only offshore” isn’t what distinguishes a group captive. And these captives are aimed at corporate risks, not selling insurance to individuals.

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