Reinsurance captive

{
  "id": "MLC-T-INS-002847",
  "term": "Reinsurance captive",
  "field": "Insurance and risk management",
  "definition": "A specialized insurance company established by a non-insurance organization to underwrite the risks of its affiliated entities, and then reinsure those risks with a third-party reinsurer. This structure allows the organization to retain a portion of the underwriting profit and gain greater control over its insurance programs. It functions as a risk financing mechanism, often domiciled in offshore jurisdictions with favorable regulatory environments.",
  "url": "https://mlchart.com/terminology/insurance/reinsurance-captive/"
}