Protected Cell Companies
In March 2004, the Authority introduced regulations to allow protected cell companies to carry on insurance business in or from the Isle of Man. The intention of these regulations is to mirror, as closely as possible, the provisions of the insurance regulations already in force on the Island. The regulations provide for the establishment of new protected cell insurance companies, and also for the conversion of existing insurance companies into protected cell companies. Copies of the Act and Regulations can be viewed or downloaded from here.
What is a PCC?
A protected cell company, or PCC, can be thought of as being a standard limited company that has been separated into legally distinct portions or cells. The revenue streams, assets and liabilities of each cell are kept separate from all other cells. Each cell has its own separate portion of the PCC's overall share capital, allowing shareholders to maintain sole ownership of an entire cell while owning only a small proportion of the PCC as a whole.
PCCs can provide a means of entry into captive insurance market to entities for which it was previously uneconomic. The overheads of a protected cell captive can be shared between the owners of each of the cells, making the captive cheaper to run from the point of view of the insured.