There are over 5,000 captive insurers worldwide and estimates
suggest that captive insurance schemes account for approximately
20% of the global corporate spend on property and casualty
insurance. The last few years have seen rapid growth in
interest in the area of captive insurers some governments and
regulators in the Middle East. In the United Arab Emirates,
the developments in relation to captive insurance are being led by
the Dubai International Financial Centre
("DIFC") which hopes to encourage the
development of captive insurance in the region.
What is a Captive Insurance Company?
A Captive Insurer is an insurance company established primarily
to primarily insure the risks of its owners or their related
entities. The parent shares in the fortune of the captive
which can provide both underwriting profit and investment
return. The Captive Insurer can be used to provide any
conventional insurance coverage and potentially to retain risks
that are difficult
