Protected Cell Captives from Caitlin Morgan
A Protected Cell Captive (PPC) is an alternative to conventional commercial insurance and offers benefits similar to those available through group and single-parent captives at reduced start-up and ongoing costs. Many clients turn to PPCs to avoid the challenges associated with insurance market cycles and to be in a better position to control their own destiny.
With a PPC, separately identifiable cells are created and owned by the same or separate cell users under which the assets and liabilities of each cell are legally segregated and ring-fenced from each other under statute. Cells can issue insurance policies and access reinsurance markets, just like a standalone insurance company.
The PPC Benefits
- Relatively low set-up and administrative costs
- Speed of set up and exit
- Flexible allocation of capital (there is no minimum for each cell)
- Enhanced risk management
- Program design flexibility
- Greater control over one’s insurance
In addition, there aren’t any restrictions as to the type of business that can be undertaken by a cell in most jurisdictions.
What Types of Organization Could Benefit from a PPC?
- Companies too small to create their own single captives
- Companies that don’t want to establish an association or group captive
- Companies that want to establish joint ventures and a strategic alliance
- Companies that would like access to specialist reinsurance markets
Potential uses and types of business for a Protected Cell Captive include funding increased deductibles for a company’s insurance policies, such as Property, Automobile, Employers Liability, and Product Liability; and writing niche insurance products where standard coverage is expensive or unavailable.
The captive experts at Caitlin Morgan Insurance Services can review the ins and outs of establishing a Protected Cell Captive and whether it makes sense for your clients. We work with some of the leading insurance PCC experts with market leading experience of cell set-up and on-going management.
We invite you to learn more about us and how we can help you expand your business.
Contact the experts at Caitlin-Morgan today and experience the benefits of working with a new kind of MGU and wholesale brokerage. For more information, call 317-575-4440 or complete the contact form on this page.