From: Captive.com/IRMI
Cell captives have become increasingly popular with companies looking to self-insure themselves in recent years.
Protected cell companies (PCCs, segregated accounts companies, or segregated portfolio companies) consist of a core company or sponsor that writes and administers ring-fenced insurance policies in underlying cells.
These policies and accounts are segregated from other cells in the PCC, hence the name.
History of Cell Captives
The first PCC was formed in Guernsey in 1997. It started as a rent-a-captive option, where a company could buy a portion of a captive.
From this, the segregated portfolio company concept was born. The aim was to protect the assets and liabilities of each cell from another.
Initially, because cells are controlled by a core company, they weren’t separate corporate entities. However, that changed when captive domiciles started passing laws to allow cells to form as corporations, with the ability to contract directly and be effectively treated as insurance companies.
