NU Online News Service, Oct. 6, 3:54 p.m. EDT
Willis Group Holdings said it is opening a captive insurance facility in Malta to provide coverage for entities in the European Economic Area.
Lime Street Insurance PCC Ltd. is a protected cell company (PCC) designed to provide a captive facility–in effect a "rent-a captive"–to those that lack sufficient premium volume or cannot establish their own insurance subsidiary.
"Lime Street Insurance PCC Ltd. brings captive technology to a number of entities that may have thought this option was unavailable to them," said Malcolm Cutts-Watson, chairman of Willis Global Captive Practice, in a statement. He said Willis chose Malta because of its membership in the European Union.
Clients will have their own underwriting account in the PCC as opposed to unrelated businesses renting the same captive without a guarantee that funds from one company will be used to pay the claims of another.
The PCC is for those seeking to consolidate risk, access international markets or reduce dependency on local carriers, Willis said.
PCCs are the fastest-growing sector of the captive market, according to Tom Coughlin, leader of Willis Global Captive Practice. Lime Street "enables any entity with EU risks to manage them in a cost-efficient manner, secure in the knowledge that they are dealing with a Willis vehicle," he said.
The Lime Street facility is to be managed by Willis Management (Malta) Ltd., headed by Executive Director Anne Finn.
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