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Introduction video
What is a PCCIC?
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What is a PCCIC?

A PCCIC is an insurance company that can set up any number of segregated captive cells off the “core” of the PCCIC.

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Each segregated cell captive is in effect a mini insurance company created to underwrite the specific client’s business.

Each cell is segregated from all the other cells, if one cell were to fail (and we’ve not had that happen) then it cannot affect the other cell captives.


Think of Hartwell as being the axle on a bicycle wheel and the cells are the spokes coming from the axle. 


Hartwell is the hub that ties everything together, but each spoke is independent.

The license and regulation and statutory capital all rests with the “core” cell, Hartwell Insurance Company, and we are the entity that makes it all happen, but every cell is independent and entirely segregated.

Hartwell, as the PCCIC, issues the Insurance Policy for and on behalf of the segregated Cell.  All Premiums under the Policy pass into the Cell and are accrued on behalf of the client. In the event that the client wishes to close the cell then all accrued Premiums (less claims and commissions) are returned to the client.

What is a Cell Captive?

What is a Cell Captive?


Protected Cell

Protected Cell

Unincorporated Cells are formed by contract (rather than by incorporation) and are therefore quicker to form. 


They are regulated by captive insurance laws and their corporate governance is via contractual rights only.

An Incorporated cell is a company in its own right with separate legal identity and its own memorandum and articles of incorporation. 


It has its own board of directors and has an annual board meeting.

Unincorporated protected cell
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We tend to use the unincorporated cell structure as cells can be set up quickly and efficiently with minimal burden on the client especially regarding administration and more importantly capital requirements.  


By creating unincorporated cells, all activity within that cell is “off balance sheet” as far as the client is concerned. 

The Client becomes a “Sponsor” of the unincorporated cell via the bilateral agreement to the “Participation Agreement”.  

It is by the far the simplest way to create a cell insurance company but with all the benefits.

Principal Advantages

  • Potential underwriting profit

  • Premium costs related to own loss experience as opposed to the insurance market’s view of the industry segment in question

  • Access to reinsurance markets not available in the retail insurance market

  • Investment income on premium and loss reserves

  • Cash flow benefits 

  • Possible improvements in policy wording/coverage not available in the conventional market 

Possible Disadvantages

  • Exposure to potential losses, which can erode capital (1)

  • Capital and solvency requirements (2)

  • Running costs/management time (3)

(1) The Capital that is put at risk is set at the level where the Client is comfortable accepting that level of risk.  Very often this would be the amount they would be paying under the deductible of a standard insurance program together with the premium they would be paying away to their insurance carrier.


(2) We normally write an assessable policy which would remove the need to arrange an LOC or inject capital. 


(3) Again, by using Hartwell PCCIC, Hartwell looks after all the day to day running of the Cell leaving the Client’s management to get on with running their own business.  The running costs are covered by the Hartwell Margin (Program Management Fee) which is far less than creating a standalone Captive.

Create your cell with Hartwell. 

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