Captive Insurance companies are established with the specific objective of insuring risks emanating from their parent company or group. Captives can be expanded to insure specific customer related risks as needed. Captive insurance companies are a risk management tool that allows companies to form their own insurance company subsidiary that can develop tailor made solutions to meet the specific needs of the parent company or group.

There are generally 3 types of Captive insurance structure available in Labuan: Pure Captive, Master-Subsidiary Rent-A-Captive and Protected Cell Companies (PCC) Captive.