What type of coverage does a Captive Insurance Company typically provide?

A Captive Insurance Company is primarily designed to provide coverage for property and casualty exposures. This type of insurance is tailored to the specific needs of the parent company that owns the captive, allowing for risk management solutions that address particular risks associated with its operations or industry. Captive insurance often includes coverage for losses from events such as natural disasters, liability claims, or other operational risks that may not be adequately covered by traditional commercial insurance.

The other types of insurance mentioned in the options are typically not the focus of a captive. For example, life insurance products generally fall under separate classifications and are not the primary offering of captives. Similarly, universal health insurance plans and exclusive auto insurance policies usually involve broader market offerings and regulatory structures that differ from the specialized nature of captive insurance. Each of these alternative coverage types reflects a distinct area of insurance that does not align with the core objective of captive insurance, which is to provide customized risk management solutions for property and casualty exposure.