Structure
Protected cell companies were first devised in Guernsey in 1997. They consist of a single legal entity made up of a number of self-contained cells. While the PCC has its own core funds (provided by the owners), each cell also carries its own capital and operates individually as a separate ring-fenced account. Its assets are statutorily protected from the creditors of another cell.PCCs can be used in two ways. A parent company can own the whole PCC, using its separate cells to segregate its risks into different accounts. Alternatively, individual cells can be rented by parties that are independent of the PCC owner. The latter has become a popular risk solution for smaller companies as the capital requirements of individual cells are significantly lower than those for a captive insurer.
An ICC follows a similar structure to a PCC in that it is made up of individual cells. However, in this solution each cell has its own legal identity. Each individual cell can therefore operate as a separate corporate entity, but not as a subsidiary of the ICC.
The main advantage an ICC has over a PCC is that business can be conducted between the cells of an ICC. There is also the additional security of knowing that each cell is legally separated from the rest of the company.