Guernsey-based protected cell company (PCC) Robus Insurance PCC has had a captive cell pre-authorised for a client for their professional indemnity programme.
Robus used the Guernsey Financial Services Commission (GFSC) pre-authorisation pilot scheme for cell captives, which was introduced in December.
Robus Guernsey’s PCC, Robus Insurance PCC, was approved in December for participation in the GFSC pilot scheme.
Once the application information was received and the usual due diligence process was completed, the cell was incorporated rapidly, according to Robus, without having to wait for consideration of the license application which ordinarily would take a number of weeks.
The pilot scheme is for insurance entities seeking a GFSC category 5 license (captive insurance/reinsurance business) only.
The scheme applies to insurance-licensed PCCs owned by an insurance manager and is available for captive cells writing a single line of general insurance business to meet an urgent business need.
It must meet the standard formula minimum capital requirement and prescribed capital requirement, with no regulatory adjustments available.
Recently appointed Justin Upson, director of Robus Guernsey and leading the Robus PCC vehicle, says: “The GFSC pilot scheme has allowed us to offer our client excellent speed to market. The hardening PI market is causing a dramatic increase in external premiums which means a protected cell solution is preferrable. I would encourage others in the PI market to explore the option, especially as the cell pre-authorisation option makes the process even simpler.”
