Which type of insurer primarily provides coverage for its owners?

A captive insurer is a type of insurance company that is created and owned by one or more non-insurance companies to provide coverage specifically for its owners or affiliates. This arrangement allows the owners to retain some of the risks they face and tailor insurance products to their specific needs, often resulting in cost savings and more flexibility in coverage.

Captive insurers are particularly advantageous for businesses with unique risks that may not be adequately addressed by traditional insurance markets. By providing coverage primarily for its owners, a captive insurer allows for a more strategic approach to risk management and can enable owners to better control their insurance costs and claims processes.

In contrast, stock insurers are owned by shareholders and focus on generating profits for those shareholders, while mutual insurers are owned by policyholders and aim to provide coverage to them rather than focusing on a specific set of owners. Reciprocal insurers are groups of individuals or organizations that mutually agree to insure each other's risks, but they do not have the exclusive focus on providing coverage only for their owners like a captive insurer does.