A captive insurance company is an insurer created and controlled by a company or group primarily to insure the risks of its owner and affiliates.
A captive insurance company is an insurer created and controlled by a company or group primarily to cover its own risks. Unlike a conventional insurer, it generally does not serve a broad retail market.
In simple terms:
A captive can form part of a corporate insurance programme when a group has recurring risks, reliable loss data and enough capital. It may allow the group to tailor cover, retain predictable losses and centralise claims information.
This does not make insurance free. The owner provides capital and reserves and pays for management, reporting, actuarial work and claims handling. If losses are more frequent or severe than expected, the financial pressure remains within the group.
The business selects the risks it wants the captive to accept. The captive receives premiums, establishes reserves and pays covered claims. It may transfer a large or volatile share through reinsurance, or combine its own retention with external insurance.
Before launch, the group normally reviews loss frequency and severity, available capital, operating costs, tax, reporting duties and the rules in every country where the owner and risks are located. The proposal should be compared with ordinary business insurance, rather than chosen only to keep greater control over premiums.
With self-insurance, a company sets aside its own funds and pays losses directly. A captive is a separate legal entity that issues insurance contracts, records insurance liabilities and operates under the insurance rules of its jurisdiction. An internal reserve without a licence and insurance contracts is not, by itself, a captive insurance company.
Uzbekistan's current insurance law does not identify captives as a separate class of insurer. Insurers are established as joint-stock companies, and insurance activity requires a licence. Calling a structure a captive therefore does not remove the general requirements for capital, governance, reserves, reporting and authorised insurance classes.
If the owner and captive are in different countries, the group must also review where each risk is located, whether a foreign insurer may be used, how funds move and which authority supervises the arrangements. A specific structure needs legal, tax and actuarial assessment. For a broader view, see this guide to corporate insurance in Uzbekistan.
The key question is not simply whether a separate company can be registered. The structure must be able to absorb losses and remain lawful, transparent and economically sound.
Madina's industrial group repeatedly insures similar warehouses, machinery and shipments.
Before forming a captive, the group compares its loss history, capital needs and the cost of commercial cover. That assessment shows whether a separate insurer is justified.
Aziz's manufacturing company can absorb predictable smaller losses but is concerned about a rare severe event.
A captive may accept the agreed portion while a reinsurer takes a more severe layer. The responsibilities and limits must be written into the contracts.
Bekzod's holding company creates an internal loss fund and starts calling it a captive company.
The fund alone is not enough. Without a separate licensed insurer and insurance contracts, it remains an internal reserve rather than captive insurance.
This is a road incident in which harm was caused to people, vehicles, roads, structures, or other property.
This is a simplified procedure for recording a traffic accident without calling traffic police, when the drivers themselves document the circumstances for insurance settlement.
KASKO is insurance that protects not someone else’s car, but your own. Put very simply, it is like a financial safety cushion for your vehicle: if there is an accident, a broken window, parking damage, a fallen tree, or even theft, the insurance company can take on part of the big expenses. The main idea is simple: KASKO helps you avoid facing major car-related costs alone.
Motor third-party liability is your responsibility to other people if, because of your actions on the road, their car, property, health, or life is harmed. Put simply, it is a rule for situations where a driving mistake leads to someone else’s loss. The main idea is simple: this responsibility exists so that the injured party is not left without compensation, and the driver at fault does not have to handle everything alone out of pocket.
Insurance for a car loan is protection connected not just with the car itself, but with buying that car on credit. Put very simply, the bank gives money for the vehicle and wants to be sure that both the car and the repayment process remain protected. That is why insurance often comes together with a car loan: it helps reduce risks both for the bank and for the borrower if something serious happens to the car.
This is a modular car insurance product in which the vehicle owner chooses which parts of the car and which risks to insure.
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