Cell Captives White Rock Incorporated Cell Company
White Rock Insurance (Guernsey) ICC Limited (White Rock ICC) is an Aon owned company and the first Incorporated Cell Company (ICC) in the world to be insurance licensed. White Rock ICC is licensed by the Guernsey Financial Services Commission to write all classes of General business. While an ICC appears to resemble an adapted form of a Protected Cell Company (PCC) they are fundamentally different.
A PCC is one single legal entity with multiple segregated cells. An ICC comprises multiple incorporated and registered cells that are separate legal entities in their own right.
Business is legally segregated
Within the White Rock ICC facility, each business entity is legally segregated from all other incorporated cells in the ICC.
Who uses Cells?
Cells can be used by:
- Clients who wish to have a direct-writing or reinsurance captive facility without the need to own a completely stand-alone company.
- Clients who require a shorter-term solution such as a solution for captives in run-off, who might want to migrate the insurance programme into the White Rock ICC facility and have their captive run off efficiently and effectively.
- Large organisations that already own a captive but would like to reduce their management time and administration.
- Small to medium-sized companies that might want a risk solution vehicle but do not want to incur the costs of having a stand-alone captive.
- Clients who would like to try out the captive solution but would not want to start with a stand-alone captive. Under Guernsey Law, an incorporated cell can eventually be converted to a stand-alone company.
- Faster set-up and exit when compared to a wholly-owned subsidiary
- Reduced management time for clients compared to captive ownership
- Risk gaps and exposures may be allowed within the incorporated cell, subject to approval from White Rock and the GFSC
- Easy conversion of an incorporated cell to a company, or from an existing company to an incorporated cell
- White Rock companies are on the Aon security list
- Bespoke insurance policies are tailored to the needs of the insured, allowing a more flexible approach to entity risk management
- Access to the reinsurance market reduces the cost of premiums
Timeframe for setting up an ICC
An ICC can be set up in a relatively short period of time. Aon Insurance Managers (Guernsey) have managed to set up cells over a period of 4 weeks.
The document 'Setting up an ICC' outlines the steps involved in setting up an ICC.