Our company’s cell structures allow clients an equity participation in a licensed insurer through a shareholding agreement. The structure is similar to that of a honeycomb with separate classes of shares, with each class comprising a business cell. Each cell is represented by a separate class of ordinary shares with specified dividend rights. Clients subscribe for these shares, and the client, who is the cell owner, is afforded the risk financing and conventional insurance capabilities enjoyed by a licensed insurer. As a valuable risk management tool, cells provide a vehicle for companies to write their own insurance risks.  Typical risks which are insured in cells include excess buy down layers and risks not insurable or uneconomic to insure in conventional markets. Cells allow clients to access the conventional insurance and reinsurance markets directly and to cost-effectively cover the excess and catastrophe exposures.

Key benefits of Cell Captives

• Assist in reduction of the cost of conventional insurance.
• Allows the companies to retain risk and share in the profit potential of an integrated risk management programme.
• Investments provide interest returns and increases risk carrying capacity.
• Provide access to direct insurance and reinsurance markets locally and globally.
• Flexible to structure customized insurance programmes for specific clients.
• Actuarial input provides correct cell retentions and solvency levels.

A contingent policy is a conventional policy which provides insurance protection on a conventional basis with added benefits of allowing the insured client to participate in sharing of underwriting profits and implementation of sound risk management policies. They provide the primary layers of an insurance programme or cover risks not insurable. Contingent policies can be issued as a stand-alone policy or as a part of a risk arrangement where reinsurance is structured above the layers provided by contingency policy. At renewal or cancelation of policy, a performance bonus in declared based on claims experience. With the intention of creating insurance capacity over many years, contingency policies enable the clients to negotiate better insurance rates in the market. 

Key benefits

 

1. A valuable tailored tool for risk management and controlling the client’s risks, losses and exposures.
2. Facilitates sharing of underwriting profits.
3. A flexible arrangement that facilitates various combinations of structures, premiums, cover, insurance and reinsurance capacity.
4. Reduces exposures of price volatilities in the conventional insurance market.
5. Creates insurance capacity and reserves to absorb risk retention for difficult to insure and expensive risks in the conventional market.
6. Cost of risk is stabilized over time and determined with precise certainty.
7. Actuarial input is used to determine suitable limits and reinsurance levels.

VOLUME AND AFFINITY BUSINESS SOLUTIONS By partnering with Cell Insurance, we offer our clients an opportunity to sell customized, branded short-term insurance products to their customers through cell captives hence earning additional revenue.  With our assistance, clients get a competitive edge by developing branded mass market insurance solutions that are tailored for their customers. Cell Insurance gives the strategic and technical support in developing these products and assists in managing the processes through claims reviews, analysis of underwriting results which enables participation in enhanced revenue stream emanating from profitable underwriting results. Client Profile These products are ideal for affinity groups, employers and organizations that provide high volume branded insurance products to their customers, members and employees.   Products suitable for this solution include:

1. Cellphone insurance
2. Extended warranty cover
3. Legal insurance
4. Electronic equipment and gadgets cover
5. Motor insurance (motorcar, motorcycle, caravan, trailer, LDV)
6. Credit Protection Insurance
7. Personal liability cover
8. Car hire insurance
9. Excess waivers
10. Permanent disability covers

Cell insurance’s cell captive structures offer underwriting managers a business partnership in which they benefit from access to Cell Insurance’s license and benefit from

1. A facility that supports cell captive philosophy in a secure ring-fenced, independent environment with access to underwriting profits and investment income, plus normal administration and management expenses.
2. A flexible business partnership across levels including risk retention
3. Technical capabilities and support that includes actuarial services
  The classes of insurance suitable for this solution include the following:  
1. Selected commercial and personal lines products
2. Niche uniform insurance related products
3. Risk class specific or multiple class products

Legislation in Zimbabwe requires all mining operations within the country to provide for environmental rehabilitation both during the life of the mine and at closure. This has been achieved by most mines through balance sheet provisions which do not make the funds immediately available to the full extent of liability when needed. Cell Insurance provides mines with required guarantee to the government which finances for the rehabilitation work in full from inception of the policy. The guarantee provided is able to match the environmental liability against company assets throughout the lifespan of the mine. Key benefits

1. Guarantee with adequate cover provided immediately from policy inception
2. Multi-year insurance product with adequate cover all the time
3. No risk of perpetual over-funding
4. Premiums committed on an annual basis
5. Flexible creation of insurance reserves for future rehabilitation