The core and each cell are legally separated from each other in terms of their assets and liabilities (hence the ‘protected’) which means each cell can be owned independently with its own shareholders whilst operating under the umbrella of the core company.
Each cell is managed by the Board of Directors of the core and the shareholder owners of the cell. The cell must be capitalised in accordance with the Minimum Capital and Solvency II requirements for the business written in the cell.
Protected Cell structures are now an established part of the international insurance industry and allow smaller insurance businesses the benefits of scale by being part of a larger group. Cells are ideal for Insurance Brokers, Wholesale brokers and Affinity Groups to control the value for customers and the ability to create tailor made insurance products.
Benefits of Owning a Cell
The cell is a cost-effective way of creating your own insurance business which provides you with the ability to control the insurance you provide to your customers. Some of the main benefits are:
Options for Creating a Cell
1. Establishing a Cell
Creation of your own cell, capitalised by you and
managed by us.
Each cell application needs a business plan submitted to the Gibraltar Financial Services Commission for approval. We will work on the creation of this together with all the necessary operational, actuarial and compliance planning required. There will be a cost for this work which will depend on the complexity of your proposed business.
Once regulatory approval has been received then the shareholder and management agreements can be signed, the capital deposited and we will be able to start writing business. A cell committee will be formed containing members of the core and the cell shareholders to review all aspects of the performance of the cell business.
Capital requirements
Each cell will have different requirements, and this will be calculated as part of the business planning process. If you believe the capital requirements are too onerous to start your business, then as a business we too like to be innovative and flexible. We have solutions that we are happy to discuss that could help you, or you could look at our alternative option of using the core initially whilst building the business and the capital.
2. Use Our Own Cell to build for Your Cell
We appreciate that many business opportunities might initially be relatively small and need time to grow.
We are happy to help if there is a good business plan and can write your business in our existing cell. We will work with you to help you build the capital you will need when you eventually create your own cell. As we have the data and experience of your business for a few years then setting up your new cell will be quicker and easier.
Authorised Classes
The business focus is on Limited Indemnity, Short-tail, Non-compulsory insurance policies. We are not able to underwrite long-tail liability business such as Motor or Employers Liability.
We are licenced by the Gibraltar Financial Services Commission to write business in the following categories: Miscellaneous Financial Loss, Property, Personal Accident, Assistance, and Liability (for our Pet business only). If new cells have products that require a different class then we will seek authorisation to extend these.
Types of Products
There are a vast array of Limited Indemnity ancillary insurance products that we can underwrite, and we are also happy to discuss niche and bespoke new ideas. Types of products include:
- Accident, Sickness, Unemployed Cover
- Caravans
- Cycles
- Death Cover
- Employee Assistance
- Event Cancellation
- Excess Protection
- Gadgets
- Goods-in-transit
- Helmets & Leathers
- Home Contents
- Home Emergency
- Key Cover
- Legal Expenses
- Motor Breakdown
- Motor GAP
- Musical Instruments
- Personal Accident
- Personal Effects
- Pet Cover
- Rent Guarantee
- Sports Equipment
- Travel
- Warranty
Product Governance
Ensuring that customers get the right insurance policy that matches their expectations when called upon is vitally important to us.
Satisfied customers are the key to building the long-term future and reputation of our business. That is why we ensure that we have the right system in place for the governance of all the products written by the PCC in the cells.
Target customer markets must be identified and matched to the suitability of the insurance product being offered to them. There is a system of product oversight to ensure these are regularly reviewed, together with the cover, pricing, fair value and claim processes.
