A PCC is a single legal entity, made up of a core and a number of ring-fenced, protected cells.

The advantage of the PCC is in the segregation of assets and liabilities- the assets of one cell will not be available to creditors of other cells in the event of insolvency. A PCC structure is therefore ideally suited for entities involved in product development, in view of the scope for isolating and managing R&D and product development risk.

The PCC concept is such an innovative solution that its uses have become widespread with the concept having been established and employed in respect of:

  • Life Insurance
  • Non Life Insurance – Retail, Commercial
  • Reinsurance
  • Securitisation
  • Catastrophe Bonds
  • Transformers
  • Asset Management
  • Structured Finance

Essentially, it allows for a self-contained cell to be established within a PCC vehicle with beneficial ownership thereof accruing normally to the client. Each cell is legally separated so that the risk in one cell cannot affect the assets in any other cell. The PCC solution normally requires less initial capital investment than a captive and generally it costs less to operate.

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.