CAPI 1.2.2 What is captive insurance business?

(1) Captive insurance business is the business of effecting or carrying out contracts of insurance as a class 1, class 2, class 3 or class 4 captive insurer.
(2) For this purpose, a class 1, class 2, class 3 or class 4 captive insurer may effect or carry out contracts that are limited to contracts of reinsurance for risks insured by the cedent.

Note Contract of insurance, contract of reinsurance and cedent are defined in the glossary.
Derived from QFCRA RM/2011-1 (as from 1st July 2011)