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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

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SRS Starts Bermuda Segregated Accounts Company

Strategic Risk Solutions
September 20, 2017

Strategic Risk Solutions (SRS) has formed Superior Risk Solutions SAC, a Class 3 segregated accounts company, in Bermuda. The company, which will be licensed this month (September 2017), is being formed to provide a Bermuda cell facility alternative to SRS's clients and trading partners.

SRS currently manages 3 affiliated and more than 20 "limited access" cell facilities for clients in several other domiciles.

"We have been increasingly asked if we can provide an independent and open access Bermuda cell captive option that allows clients to fully unbundle, while taking advantage of the established infrastructure and strength of the Bermuda regulatory environment," said Brady Young, president and CEO of Strategic Risk Solutions.

Besides providing a turnkey alternative for start-up situations, SRS believes the new segregated accounts company will be useful for entities moving from an insurer- or a broker-sponsored cell facility or as an incubator for stand-alone captive programs.

"We have clients who left program facilities to set up their own captive programs in other SRS managed facilities," said David Sykes, managing director, Strategic Risk Solutions (Bermuda) Ltd. "Superior Risk Solutions will give clients the option to stay in the domicile they are comfortable with and retain their existing service team."

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PROTECTED CELL COMPANIES

In different domiciles, slightly differently terminology is used. Bermuda uses the term "segregated account companies," and Cayman calls them "segregated portfolio companies." Some domiciles without specific [protected cell company (PCC)] legislation allow similar structures referred to as "sponsored" captives. They each provide the same core benefit—separation of accounts within a single captive insurance company for protection from other captive participants' creditors. 

Source: Risk Financing, section IV, "Group Captives, published by International Risk Management Institute, Inc. If you subscribe to Risk Financing on IRMI Online or Vertafore ReferenceConnect, you can read more about protected cell companies and other complex topics. If you don't subscribe, learn more here.

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