Unlocking Access: How Turnkey Cell and PCC Structures Are Democratising Captive Insurance

Capvartis White Paper

Executive Summary

Captive insurance, once the exclusive domain of large corporations with vast risk portfolios, is now within reach of small and mid-sized businesses. This evolution is being driven by the rise of turnkey Protected Cell Companies (PCCs) and sponsored cell structures, which significantly reduce the complexity, cost, and capital requirements associated with traditional standalone captives.

This white paper explores how turnkey cell and PCC structures are making captives more accessible, efficient, and flexible allowing businesses of all sizes to benefit from customised risk financing, enhanced control, and long-term cost savings. Capvartis is helping power this movement by automating and accelerating the feasibility, onboarding, and management processes that historically created friction and limited access.

1. Introduction: A New Era of Captive Accessibility

Historically, captive insurance structures were designed for:

• Fortune 1000 companies

• Organisations with sophisticated risk management operations

• Enterprises with large premium volumes (>£5M annually)

But as risks evolve from cyber and supply chain volatility to pandemic disruptions more businesses seek alternatives to traditional insurance. The challenge? Cost and complexity have been barriers for smaller entities.

That’s where cell captives and PCCs are making a transformative impact.

2. What Are Turnkey Cell and PCC Structures?

Protected Cell Companies (PCCs) Explained

A PCC is a legal entity comprised of a core and multiple independent cells, each of which can underwrite insurance risks and retain their own assets and liabilities. Though legally part of the same entity, each cell is ring-fenced, providing financial and legal separation.

A turnkey cell is a pre-established, administratively supported cell within a PCC that can be leased or owned with minimal setup.

Key Features of PCC Structures:

• Low startup capital

• Streamlined regulatory path

• Shared infrastructure (licensing, governance, service providers)

• Rapid setup

• Independence in underwriting, reinsurance, and financial reporting

This structure allows even small businesses or associations to own a captive without forming a full insurance company.

3. Why Turnkey Cell Captives Matter

 Turnkey cells eliminate friction and unlock the captive model for:

• Mid-sized and growth-stage businesses

• Industry trade associations

• Group captives and affinity groups

• Professional service firms and consultants

4. Use Cases: Expanding the Market for Captives

1. Mid-Market Companies

A regional logistics firm with £2M in annual insurance premiums may find traditional captives out of reach. But by leasing a turnkey cell:

• Capital contribution drops to under £150K

• No need for separate board/governance

• Underwriting can focus on fleet and general liability

2. Association and Group Programs

A trade association serving 300+ members can form a group captive using a PCC, enabling:

• Shared risk among members

• Custom coverage where commercial markets fall short

• Dividend potential and long-term cost containment

3. Specialty Coverage Carve-Outs

Cyber, warranty, environmental, or professional liability exposures can be isolated in cells:

• Reducing exposure to market volatility

• Creating optional risk-retention tools

• Generating underwriting income on niche risks

  
  

5. The Capvartis Advantage: Digitising and Streamlining Access

While PCCs lower structural barriers, administrative and feasibility burdens still exist and can slow or stall adoption. Capvartis solves this with:

CaptiveIQ Automation Platform

Digital Intake for Cell Applicants

• Guided onboarding wizard

• Pre-mapped to domicile requirements

Automated Feasibility Analysis

• Risk and loss forecasting, cell sizing

• Turnkey capital, premium, and cost modelling

Domicile Intelligence

• Compare PCC-friendly jurisdictions

• Built-in regulatory logic (e.g., Bermuda, Vermont, Cayman, Delaware)

Onboarding & Operations Support

• Pre-configured service provider integration

• Real-time financial dashboards for cell managers

This automation transforms a once bespoke process into a repeatable, scalable, and client-friendly experience.

6. Regulatory Considerations and Evolution

Why Regulators Support PCCs

• Reduce systemic risk via ring-fencing

• Attract diverse business types and industries

• Create innovation clusters around domiciles

Leading domiciles for turnkey and PCC structures include:

• Bermuda (Segregated Account Companies)

• Cayman Islands

• Vermont

• Delaware

• Guernsey

• Labuan (Malaysia)

Capvartis maintains up-to-date regulatory logic to match clients with the most appropriate structures and jurisdictions.

7. Strategic Benefits for Businesses

Cost Control - Avoid volatile pricing cycles by retaining predictable risks.

Customisation -Tailor coverage that traditional carriers won’t offer — or charge too much to cover.

Profit Potential - Retain underwriting profits and invest reserves strategically.

Risk Transparency - Gain clearer insights into loss drivers and program performance.

Enterprise Resilience - Build long-term financial stability and claims agility.

By reducing friction to entry, turnkey cells make these benefits available to all tiers of the market.

8. The Future of Captive Access is Digital and Scalable

Technology is the final piece of the puzzle. While PCCs remove capital and compliance barriers, digital platforms remove workflow, transparency, and execution barriers.

With Capvartis:

• Feasibility studies are delivered in days, not months

• Risk and financial data is integrated and visualised

• Clients and advisors gain live access to captive performance

• The PCC model becomes as intuitive as it is powerful

Conclusion

Turnkey cell and PCC structures are fundamentally reshaping captive insurance moving from an elite financial instrument to an accessible, agile risk financing tool for organisations of all sizes.

Capvartis is proud to be at the forefront of this democratisation, offering the technology and expertise to help businesses unlock the power of captives with speed, confidence, and clarity.

Smart structure. Strategic control. Scalable access.

That’s the future of insurance and it’s available now.

Contact Us

Capvartis

📧 info@capvartis.com

🌐 www.capvartis.com