# Captive insurance company (captive)

- Canonical URL: https://www.gerhardmerk.de/captive-insurance-company-captive
- Post ID: 592920
- Modified: 2023-07-25T21:00:15+00:00
- Language: en

## Definition

Large captive insurance company, usually existing as a company with its own legal personality - i.e. not as an operating department - within the group of companies operating worldwide. This insurance company directly assumes the risks of the Group. The premiums transferred by the Group companies to the captive insurance company are invested by the latter in accordance with national legislation (the captive invests the premiums saved as a result of not buying any external insurance to build up reserves in order to meet future claims). Usually, however, some of the risk is sold on the reinsurance market. However, depending on the financial strength of the Group, very high deductibles are common in reinsurance. Often, therefore, only major losses are covered. - Self-insurers (such as Deutsche Bahn AG) require approval from and are supervised by the German Federal Financial Supervisory Authority. - See self-insurance. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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