Gibraltar’s protected cell companies (PCCs) will soon be permitted to write third-party insurance business, Gibraltar’s minister for commerce, Albert Isola has revealed.
The domicile introduced its PCC legislation in 2001 and since then, cells have been widely used for both captives and fronting.
Since 2015, Gibraltar’s insurance linked-securities transactions have also been structured using a PCC cell.
“Following detailed discussions with a number of insurance businesses and the Gibraltar Financial Services Commission (GFSC), I am pleased to announce that third-party business will in future be considered from Gibraltar PCCs,” Isola revealed in a statement.
“We believe this will open up new opportunities for Gibraltar’s insurance sector in a safe and robust manner.”
Third-party business has always been permitted under Gibraltar's PCC legislation, but regulatory permission for such activity has been restricted.
Earlier this year, the GFSC reviewed the structure and decided that third-party business would be permitted within Gibraltar PCCs, on the basis that appropriate safeguards were in place and a review of applications would be conducted on an individual basis.
Isola added: “The Government fully supports the GFSC’s view that cells writing third-party business will need particularly close scrutiny and the cell’s assets and reinsurance programme will be crucial in determining if such business can be authorised.”
“The approach to new applications will be heavily reliant on the quality of the business plan, the quality of the people and organisations involved and a robust and comprehensive regulatory process. If all these aspects are satisfied then we are confident that Gibraltar PCCs can offer a flexible and secure platform for new third party insurance business.”