Intermediaries, brokers, managing general agents and other insurance producers who have developed profitable accounts of business are increasingly seeking innovative structures to grow their revenue and exert a greater degree of influence and control over their underwriting capacity.
This can be achieved by the creation of a reinsurer, sponsored by the insurance producer, to provide a bespoke facility which can underwrite, on a reinsurance basis, a proportion of the insurance products.
This type of structure is more commonly known as a Producer Owned Reinsurance Company or Cell (PORC), and requires a partnership with an authorised insurer to provide the necessary fronting for the regulated aspects of policy issue and claims.