Captive insurers are primarily organized to serve what purpose?

Captive insurers are specifically created to meet the insurance needs of their parent organization. This arrangement allows companies to retain risks internally rather than transferring them entirely to the commercial insurance market. By forming a captive insurer, the parent organization can tailor insurance coverage specifically to its own risks and requirements, which typically leads to more favorable terms and pricing than purchasing coverage from traditional insurers. This can enhance risk management strategies, provide flexibility in coverages, and potentially lead to cost savings over time.

The other options do not accurately describe the primary function of captive insurers. For instance, providing low-cost travel insurance focuses on a specific type of insurance unrelated to the captive model. Covering risks for the general public and acting as independent insurance agents imply functions that are not aligned with the idea of a captive insurer, which is fundamentally about serving the parent company's specific risk exposures.