The main difference between captives and traditional insurance companies is that captives are owned, in part or in whole, by the companies which they insure.

Captive insurance is an innovative and holistic risk management tool that has been used globally since the 1960s. Today, there are over 4,500 captives worldwide writing over $38 billion in premiums. Some of the world's leading firms that have utilized captive insurance structures include British Petroleum, Citibank, Johnson & Johnson, Proctor & Gamble, British Airways, and the Royal Bank of Scotland. Captives can be owned and used by almost every type of insurance buyer, and are especially popular in sectors such as energy, industry, real estate, financial services, transportation, utilities, and healthcare.