PCC

Overview

A Protected Cell Company (PCC) is a legal entity that allows the creation of multiple, segregated cells within one company. Each cell operates independently with its own assets and liabilities, ensuring that the risks of one cell don't affect others.

This structure is often used in insurance to manage different risks or clients under one umbrella, offering cost efficiency, regulatory simplification, and asset protection. It enables easier risk management and operational flexibility while keeping liabilities confined to individual cells.

How a Broker PCC works

There are two essential parts to a PCC - the Core and the Cells;
Cellular assets are protected from liability of other Cells;
Once the Core is established it can then form Cells for other parties;
Share capital is part of the Core’s assets;
Cells are created by the issue of class cells and each shareholder receives its own dividend stream;
The Cells do not have a separate legal personality other than for tax purposes. This means that the PCC has one Board of Directors that also oversees the statutory and regulatory compliance and governance of the Cells. Management of the Cells may be delegated by the Core to a Cell committee, typically to include representatives of the Cell owner.
Staff Requirement: Administration may be outsourced to the Core. Licensed broker to be provided by the Core.

What is a PCC

Overview

How a Broker PCC works

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