Vantage establishes first PCC in Jersey
Black Pearl Insurance 1 PC is the first protected cell company to be established in Jersey and will insure professional liability risk—professional indemnity and D&O—for Polygon Group
Vantage is already active in the captive space, but this is the first protected cell company approved by the Jersey Financial Services Commission.
Commenting on the venture, Richard Packman, managing director of Vantage said: “we are delighted to have been appointed to establish and manage Jersey’s first insurance protected cell. Protected cell companies have been widely used by the other financial service sectors in Jersey since the legislation was passed in 2006. This is an exciting development for ourselves and indeed Jersey’s insurance business as a whole and is the first of what I hope will be numerous other captive insurance cells set up here”.
“This is testament to both Vantage’s, and Jersey’s as a whole, growing reputation in the international insurance arena and the interest that the Island is starting to receive for its captive insurance services.”
Captive International spoke with Packman about the implications of the move:
What is behind the decision by Jersey to go down the PCC route?
Jersey has not gone down the PCC route, as such. It is open for pure captives as well, and Vantage already act as local managers for two such pure captives. This new case is the first cell of our PCC and the first captive insurance cell to be authorised here in Jersey.
Jersey’s finance industry has historically been led by its banking, trust and investment fund expertise however, as diversification in the economy is sought, the insurance sector is working on expanding its contribution and presence within the Island. Recent developments have seen the formation of the Jersey International Insurance Association (JIIA), and a firm and positive announcement on Solvency II which will hopefully lead to an increase in enquiries for new captives.
How healthy is the pipeline for further PCCs?
This is the first cell of our own PCC. Vantage is currently working on business development but it is in its early stages at present. In conjunction with Jersey Finance (the Island’s promotional body for the financial services sector) and the Jersey International Insurance Association, Vantage has also been working to establish the Island as a recognised jurisdiction for international insurance business.
Which types of companies and industries are a good fit for the PCC concept?
There are many companies who wish to proactively manage their risk, but do not have the capital, nor size of premium, to set up their own individual captive insurance company, with all the inherent expense that goes with it. PCC’s provide a means of entry into the captive insurance market to entities for which it was previously uneconomic.
We have already identified a number of areas where we anticipate that this product will be of particular interest:
a. Professional firms (e.g. lawyers and accountants) looking to fund, over time, the excesses in professional indemnity cover.
b. Corporations who are looking to assume more of their own risk, but do not wish to commit, sufficient capital to meet EU minimum statutory requirements.
c. Alternative risk financing entities (captive, associations, or those using existing rent-a-captive or PCC solutions)
d. Medium-sized corporations’ currently self-insuring property or business interruption exposures.
