Benefits
The main reason that many of our clients consider PCCs and ICCs is that such structures can be utilised more quickly and with lower capital outlays than traditional captive insurance companies.They allow smaller organisations to access the benefits of captive insurance and are ideal solutions for companies with annual premium spend of at least $350,000.
The segregation of assets and liabilities within separate cells is also a key benefit of these two risk retention options. The assets of each individual cell are protected from the creditors of the other cells and from the PCC/ICC owner, should the cell be rented to a third party.
Cells of an ICC have the added advantage in that business can be transacted between cells. Incorporated cells can also be converted into standalone companies and be sold or merged with other companies or incorporated cells.
PCCs are in general a simpler option. Because they are not separately registered, the cells can be formed quickly by board resolution and with lower administrative costs. Because a PCC is treated as a single legal entity, there are also tax benefits that are not available to ICCs.
In addition to these benefits, both PCCs and ICCs carry all the typical advantages of captive insurance, including: access to a broader; more stable and affordable coverage than is available in the general insurance market; and enhanced claims management processes.
At Kane, our goal is to ensure that each of our clients gains maximum benefit from these versatile and effective self-insurance vehicles.