A captive insurance group in the construction industry involves a consortium of construction companies that create their own insurance company to cover their collective risks. This approach allows them to tailor coverage to their specific needs, often resulting in cost savings, better risk management and improved claims handling. By pooling resources, these companies can gain greater control over their insurance, mitigate risks effectively and potentially enjoy financial advantages through reduced premiums and investment income. This approach requires careful management and compliance with regulatory requirements, but it can offer substantial benefits for construction firms.