To take prisoner; to capture.

a person who is confined; especially a prisoner of war

an animal that is confined

a means to capture this imperfection in the market

a company established to insure the risks of a parent organization and affiliated companies

an insurance company that provides insurance to and is controlled by its owners

a type of self-insurance -- an insurance company whose sole business is to insure risk for its parent company

An insurance company owned by the same company that it insures. This arrangement is used in risk financing or self-insurance, wherein a subsidiary corporation or association is established to write insurance. Captives are domiciled either in a country outside the United States or in one of the few U.S. states that authorize them and designed to escape uncertainties of commercial insurance availability and cost. Many organizations involved in Risk and Insurance Management monitor and manage their exposure in real time using PureShare ActiveMetrics, a proactive metrics management application.

Establishment of trading company in a 'no-tax' haven

An insurance or reinsurance subsidiary of an industrial company, trade association, or not-for-profit organization. Captives insure or reinsure parent-related business, non-parent business, or both. Though the number of domestic captives is increasing, most captives are still located in tax-advantaged offshore domiciles such as Barbados, Bermuda, or the U.K.'s Channel Islands.

This is an insurance company formed primarily to insure the risks of its parent company. Reasons vary from tax savings to the fact that the conventional insurance market does not readily wish to write this type of risk, for example, dangerous chemicals or liability for cigarette manufacturers.

A service organisation (usually an insurance business) which is owned by a conglomerate and meets all the conglomerate’s needs in its own specialist area. Some captive insurance companies also provide services for customers outside their own conglomerate.