Insurance broker Marsh today announced that it has formed two protected cell company (PCC) captive facilities.
The PPC facilities – Mangrove Insurance Solutions PCC based in Washington DC and Mangrove Insurance PCC based in the Isle of Man – are the first to be offered by Marsh.
Marsh said Mangrove has been established to serve the needs of small and mid-size businesses, as well as larger businesses looking to segregate retained risks associated with joint ventures, strategic alliances and other business arrangements.
A statement from Marsh said that PPC is among the fastest growing alternatives to conventional commercial insurance and offers benefits similar to those available through group and single-parent captives at significantly reduced start-up and ongoing costs, as well as a shorter licensing timeframe.
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.”