Chapter 1 (Cell captives)

Question 1

What is the main duty of the licensed insurer

Answer 1

Governance and compliance across all cells

Question 2

What other services can it provide (U SCRIP)

Answer 2

-Underwriting
-Start up assistance
-Claims management
-Reinsurance
-Investment management
-Pricing

Question 3

What additional regulations do cell captive owners have to deal with

Answer 3

FSCA Conduct standard 2 of 2022
-relates to third party cell captive arrangements

Question 4

What are the risks faced by policyholders

Answer 4

1) risks related to fair conduct of business and conflicts of interest related to profit share motive inherent in certain cell captive arrangements
2) ring-fencing leads to inability to diversify capital requirement across all product lines written in other cells which results in higher cap requirements.