Which type of insurer is created to serve the needs of its parent company specifically?

A captive insurer is specifically designed to serve the insurance needs of its parent company. This type of insurer is formed when a business creates its own insurance company to manage risk, typically allowing the parent company to retain control over specific insurance coverages and manage costs more effectively. By doing so, the parent company can tailor insurance policies to its unique risks and operational needs, which is not always possible with traditional insurers.

Captive insurers can cover a wide range of risks and provide flexibility in terms of premiums, limits, and coverage options. This is particularly beneficial for businesses in specialized industries where standard insurance policies may not adequately address their particular risks.

In contrast, mutual insurers are owned by their policyholders and primarily aim to provide insurance coverage to them rather than serving just one parent company. Lloyd's syndicates and public insurers also operate under different models, focusing on broader market segments or public interests, respectively. Thus, the captive insurer's unique position as a dedicated solution for a specific entity’s insurance needs defines its primary function and makes it the correct answer in this context.