A captive is an insurance company that is created to insure the risk of its parent company or companies. A captive can be owned by a single company or a group of companies who are sharing in profit and losses. Historically, companies have used captives to facilitate the management of predictable property and liability risks. As health insurance costs continue to rise throughout the US businesses are searching for ways to combat these skyrocketing expenses. Captive programs have become a more standard way to manage another type of risk: employee benefits.