Regulatory Alerts2018-07-04
Joint Communication 2 of 2018: Update on Third-Party Cell Captive Insurance Regulatory Proposals
The Prudential Authority and Financial Sector Conduct Authority jointly issued this communication to update the regulatory framework for third-party cell captive insurance under the Insurance Act, 2017. The regulators mandate dedicated licensing for cell captive insurers, prohibit mixing first-party and third-party risks within the same cell, and propose a new Prudential Standard enforcing strict governance, risk management, and financial soundness requirements. Additionally, the Financial Sector Conduct Authority will introduce a Conduct Standard to regulate cell ownership structures while explicitly rejecting Protected Cell Company legislation to preserve risk pooling and protect policyholders.
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