--- title: "✅ What is a captive insurance? | Reinsurance tutorials #21" description: Understand what is a captive insurance - easily explained with a video. 📌These tutorials will offer you all the basics you need to master reinsurance image: https://blog.arundore.com/hubfs/a%20captive%20insurance%20LN.jpg --- [![Arundo_Logo_RVB-1](https://blog.arundore.com/hs-fs/hubfs/Arundo_Logo_RVB-1.png?width=115&height=76&name=Arundo_Logo_RVB-1.png)](https://www.ccr-re.com/en/home) - [News](https://blog.arundore.com/en) - [Reinsurance Tutorials](https://info.arundore.com/reinsurance-tutorials) - [Women of Power](https://info.arundore.com/women-of-power) - [MTPL Losses France Study](https://info.arundore.com/assessing-the-losses-of-severe-personal-injury-victims-in-motor-liability-cases) - [Arundo Re Talks](https://www.arundore.com/en/arundo-re-talks) - [français-FRANCE](https://blog.arundore.com/fr/qu-est-ce-qu-une-captive) [Home](https://blog.arundore.com/) [The reinsurance and insurance blog of Arundo Re](https://blog.arundore.com/en) What is a captive insurance? 9 February 2021 1 min read # What is a captive insurance? ## Reinsurance tutorials #21 ## What is a captive insurance? To mutualize its risks, to have an adapted coverage to its particular business risk, to reduce its insurance premiums or even to save taxes, a company may decide to create a captive insurance. According to the Solvency 2 Directive, a captive is an insurance or reinsurance company owned by a parent company in order to provide insurance cover exclusively for the business risk of the members of the group of which it is a member. In doing so, the companies of the group benefit from self-insurance at the corporate level. Most of the captives are members of a commercial, industrial or services company. For example: EDF, Dassault, L’Oréal or Veolia. There are about 6 -,000 to 7,000 captives in the world, representing 100 billion USD of premiums and 480 billion USD of capital management. In fact, all major international groups have a captive. A captive is a company. This means it has its own governance and teams. But, most of the tasks are outsourced. The captive must respect the same regulations as an [insurance](https://blog.arundore.com/en/what-is-insurance) or [reinsurance](https://blog.arundore.com/en/what-is-reinsurance) company, such as Solvency 2. For tax reasons, most captives have their headquarters in Luxembourg, Ireland or Malta. In France, due to regulations, there are not that many captives: less than 200.   The captive plays a strategic role in the risk management of the group. It contributes to monitor insurance costs, to have adapted policies, to benefit from a low claims frequency or costs, to have access to the reinsurance market.   A company with a captive must also purchase insurance coverage for more traditional [risks](https://blog.arundore.com/en/what-is-risk) such as natural disasters in order to benefit from a wider risk mutualization.     ---     ## 📺 More episodes to come... Subscribe now to receive them in advance before their public release! 📥   [mailto:?subject=What%20is%20a%20captive%20insurance?&BODY=I%20found%20this%20article%20interesting%20and%20thought%20of%20sharing%20it%20with%20you.%20Check%20it%20out:%20https://blog.arundore.com/en/what-is-a-captive-insurance](mailto:?subject=What%20is%20a%20captive%20insurance?&BODY=I%20found%20this%20article%20interesting%20and%20thought%20of%20sharing%20it%20with%20you.%20Check%20it%20out:%20https://blog.arundore.com/en/what-is-a-captive-insurance) ## Latest articles #### 7 October 2025 ### [🌞 Local features seen by our LATAM Underwriters](https://blog.arundore.com/en/local-features-seen-by-our-latam-underwriters) Another meeting with The Reinsurance Tutorials, episode #9 - Season 4 ### [+](https://blog.arundore.com/en/local-features-seen-by-our-latam-underwriters) #### 16 September 2025 ### [🌎 LATAM Non-Life Reinsurance: A 24-Market Masterclass](https://blog.arundore.com/en/latam-non-life-reinsurance-a-24-market-masterclass) Penultimate meeting with The Reinsurance Tutorials, episode #8 - Season 4 ### [+](https://blog.arundore.com/en/latam-non-life-reinsurance-a-24-market-masterclass) #### 27 August 2025 ### [🦠 LATAM Life/ Non-Life Reinsurance: Assessing Pandemic Impacts Masterclass](https://blog.arundore.com/en/latam-life/-non-life-reinsurance-assessing-pandemic-impacts-masterclass) Seventh meeting with The Reinsurance Tutorials, episode #7 - Season 4 ### [+](https://blog.arundore.com/en/latam-life/-non-life-reinsurance-assessing-pandemic-impacts-masterclass) #### 5 August 2025 ### [🏜️ Local features seen by our MENA Underwriters](https://blog.arundore.com/en/️-local-features-seen-by-our-mena-underwriters) Sixth meeting with The Reinsurance Tutorials, episode #6 - Season 4 ### [+](https://blog.arundore.com/en/️-local-features-seen-by-our-mena-underwriters) [View all articles](https://blog.arundore.com/en) **Arundo Re** 6 RUE FAVART 75002 PARIS - FRANCE [Contact us](https://www.arundore.com/en/contact) [Job opportunities](https://www.welcometothejungle.com/en/companies/arundo-re) [![Arundo_Logo_RVB-1](https://blog.arundore.com/hs-fs/hubfs/Arundo_Logo_RVB-1.png?width=202&height=133&name=Arundo_Logo_RVB-1.png)](https://www.arundore.com/en/)   [Terms of use & legal notice](https://www.arundore.com/en/legal-notice) I[Personal data protection](https://www.arundore.com/en/gdpr) I © - Arundo Re 2026 All rights reserved ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Sylvie Chanh", "url" : "https://blog.arundore.com/en/author/sylvie-chanh" }, "dateModified" : "2021-02-09T08:00:36.901Z", "datePublished" : "2021-02-09T08:00:36.000Z", "headline" : "✅ What is a captive insurance? | Reinsurance tutorials #21", "image" : [ "https://blog.arundore.com/hubfs/a%20captive%20insurance%20LN.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.arundore.com/en/what-is-a-captive-insurance", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.arundore.com/hubfs/Arundo_Logo_RVB-2.png" }, "name" : "Arundo Re" } } ```