Producer Owned Reinsurance Company/Cell

Jun 20, 2016

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.