Gain greater control over underwriting.
Deliver revenue opportunities with creative captive solutions.
Artex provides intermediaries, brokers, Managing General Agents (MGAs) and other insurance producers the opportunity to leverage the profitable accounts they have developed with innovative structures that enable them to grow their revenue and exert a greater degree of influence and control over their underwriting capacity. Known as a Producer Owned Reinsurance Company or Cell (PORC), a reinsurer, which is sponsored by the business producer, is formed to underwrite a portion of the insurance products. The PORC requires an authorized insurer to provide the necessary fronting for the regulation of policy issuance and claims.
How does this work? The business producer’s reinsurer, which can be established with the use of a Protected Cell Company (PCC), participates in the underwriting via an agreed cession from the fronting insurer, enabling the reinsurer to capture a share of the underwriting profits while also providing the ability to exercise some control over rating, policy coverage and claims. This structure appeals to those insurance business producers looking to share in their underwriting risk and capture profits lost to the commercial market.
A PORC can be a good fit for insurance producers with gross premium of approximately £500,000 or $750,000. All classes of insurance business are suitable, particularly short-tail lines with low claims volatility. Insurance producers should have strong control over all front-end functions including marketing, policy issuance and premium collection, etc. to leverage the benefits of a PORC structure.
Working with Artex.
Partnering with Artex offers insurance producers the advantage of working with a company experienced in establishing proven and innovative approaches that have benefited both our industry and the clients we serve. Access to Artex’s Protected Cell Companies provides a cost-effective facility as the reinsurance structure, and can be achieved with few or no changes to the existing insurance and reinsurance management arrangements.
Our team will be there throughout the process – from the initial assessment and feasibility study to licensing and the ongoing management of the captive.