Innovation and creation drive cell growth
Protected cell captives—and indeed cells as a whole—are booming, with activity in this area of the captive insurance market up in response to keen interest from the market.
In the latest edition of Captive International’s US Focus, we looked at this vibrant and busy area of the market and asked why it is seeing so much attention from the market.
Indeed, as Jeff Simpson, partner at Womble Bond Dickinson, told Captive International, there is evidence of a constant stream of new projects, for new structures and a variety of different lines of cover. There are different types of protected cell companies, in several domiciles, and he’s seeing activity in quite a few of them.
And Simpson wasn’t alone in pointing that out. Others contacted by Captive International told the same story, that of a continued trend of growth so far in 2023. The usual type of cells are still being created, but there is more growth from cells set up specifically for property and catastrophe risk, for example.
And more cells are being set up to respond to special situations: for example, large companies setting up cells for spinoffs—by doing so they aim to isolate the risk associated with the business before that division is spun off.
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