Which types of insurance coverages can a captive insurance company not provide?

A captive insurance company is typically formed to insure risks related to the parent company or its affiliates. While it can offer various types of insurance coverages, certain types, such as personal motor vehicle or homeowner's insurance, are usually not provided by captive insurers.

Captive insurance companies focus on insuring the risks of their owners rather than the general public. Personal lines of insurance, which include motor vehicle and homeowner’s coverage, are generally designed for individual consumers and are more associated with traditional insurers that serve a broad market. Captives are not structured to handle the regulatory and underwriting complexities involved with providing personal lines, which require a different approach compared to commercial lines.

In contrast, captives can effectively write commercial property insurance, liability insurance for businesses, and life insurance and annuities, which are more closely aligned with their purpose of risk management for their owners and businesses. Thus, the focus of a captive insurance company's offerings makes personal motor vehicle or homeowner's insurance a type it typically cannot provide.