What type of insurance company is owned by one or more entities primarily to insure their own risks?

A captive insurance company is specifically created and owned by one or more entities to provide coverage for the risks faced by those entities. This structure allows the owners to insure their own unique risks, which may not be adequately covered by traditional insurance markets.

Captive insurance companies are often established by larger organizations that wish to have more control over their insurance costs and risk management strategies. This can include customizing coverage options and potentially saving on premiums since the profits from the insurance operations can benefit the owners directly.

In contrast, claims made basis of reinsurance refers to a specific framework under which reinsurance is provided, typically involving coverage that is triggered when a claim is made during the policy period. Business interruption is a type of insurance that covers lost income due to disruptions in business operations, not a type of insurance company. A placing slip is a document used in the insurance industry to outline the terms of the insurance to be placed and does not describe an insurance company type.

Therefore, the captive insurance company is the correct choice as it directly addresses the concept of an insurance company owned primarily for the purpose of insuring the owners' own risks.