WHAT IS A CAPTIVE?
Establishing a captive is not merely about incorporating a
company, instead it is about forming a new insurance company.
A captive is an insurance or reinsurance company established by
a non-insurance parent company. A captive insurance business offers
to insure the risks of its parent or related/associated
corporations. Such risks include any legal risk that may be
underwritten by a commercial insurer.
Over 75% of the world's Fortune 500 companies are parent
owners of captive insurance companies, with total captive premium
income exceeding USD100 billion, via the approximately close to
7,000 captives established worldwide.
In Asia Pacific, many large conglomerates are beginning to
recognise captives as a key element in facilitating business
efficiency. According to Aon's Asia Market Review 2017, the
region is experiencing "an unprecented level of sophistication
in captive owners" and the increase in the take-up rate of
captives shows that
