A cell captive is particularly suited to:
- Financing risk where losses, such as workers’ compensation or auto liability, are predictable.
- Acting as a fronting structure to access the reinsurance markets.
- Collateralized (re)insurance, including insurance linked securities, weather derivatives, and more.
- Situations where market conditions may force retaining or funding less predictable risks.
- Companies seeking to reinsure fronted insurance businesses associated with a specific project, division, join-venture, or strategic alliance.