Marsh in new captive launch

Marsh has established protected cell captive insurance facilities in Washington, DC, and Isle of Man.

The broker said they will serve the needs of small and mid-sized businesses seeking cost-effective risk-financing alternatives, as well as larger firms looking for ways to segregate retained risks associated with joint ventures, strategic alliances, and other special situations.

Both facilities have received approval of the regulatory authorities in their respective locations and are accepting business.

Marsh said that while protected cell captive (PCC) facilities offer benefits similar to those available through group and single-parent captives, individual businesses and other entities participating in the PCC are insulated from the loss experience, liabilities, and credit risks of other participants, and consequently avoid potential costs, such as additional premium requirements or capital outlays that could arise in group captive arrangements when other participating firms have poor loss experience or more volatile risk profiles.

Michael Cormier, a managing director of Marsh and global leader of the firm’s Captive Solutions Practice, said: “A growing number of our clients are seeking alternatives to the traditional insurance market, both to avoid the challenges associated with market cycles and to be in a better position to control their own destiny.

"These new facilities give small and mid-sized businesses another option with which to meet their risk management needs in a cost-effective manner. They also provide larger firms with a timely opportunity to test the waters of alternative risk financing without the potentially significant upfront investment of time and expenses associated with establishing a single-parent captive.”