The Protected Cell Company (PCC) & Incorporated Cell Company (ICC) Concepts.

One of the most innovative developments in the Captive industry has been the introduction of the Protected Cell Company (PCC), followed in more recent times by the Incorporated Cell Company (ICC).

Protected Cell Company

PCC’s were first devised in Guernsey in 1997. They consist of a single legal entity made up of a number of self-contained cells. While the PCC has its own core funds (provided by the owners), each cell also carries its own capital and operates individually as a separate ring-fenced account. Its assets are statutorily protected from the creditors of another cell.

Incorporated Cell Company

An ICC follows a similar structure to a PCC in that it is made up of individual cells. However, in this solution each cell has its own legal identity. Each individual cell can therefore operate as a separate corporate entity, but not as a subsidiary of the ICC.

The main advantage an ICC has over a PCC is that business can be conducted between the cells of an ICC. There is also the additional security of knowing that each cell is legally separated from the rest of the company.

Benefits

The main reason that many of our clients consider PCCs and ICCs is that such structures can be utilised more quickly and with lower operating costs than traditional captive insurance companies.
They allow smaller organisations to access the benefits of captive insurance and are ideal solutions for companies with annual premium spend of at least £250,000.