EU Direct Cell Writing Facility

Jun 17, 2020

Intermediaries, brokers, managing general agents (MGAs) and other insurance producers who have developed profitable accounts of business are increasingly seeking innovative structures to grow their revenue and exert greater control over the underwriting capacity.

This can be achieved by the creation of an insurance facility, sponsored by the business producer, to provide a bespoke facility into which the insurance products can be directly underwritten, whilst also exercising control over key aspects such as rating, policy coverage and claims.

The use of a Malta domiciled protected cell company (PCC) is an attractive entry into direct underwriting offering the opportunity to establish a cell within an existing facility with the advantage of lower set up costs and capital requirements. It will appeal to those insurance business producers wishing to become risk carriers and capture underwriting profits currently being lost to the commercial market.

A Malta PCC is authorised, under the EU Life or Non-Life Insurance Directives (no composites), to underwrite life or general insurance business directly into the EU and EEA States, offering cell owners a flexible and robust facility with which to secure their underwriting capacity