The broker expects the structure to appeal to smaller firms exploring captives, larger corporates pursuing phased ownership strategies and ILS sponsors.
Industry participants say the proposed framework, set to launch by 2028, could reduce costs, improve operational efficiency and support broader adoption of captives and insurance-linked securities.
The proposed protected cell company framework could broaden access to captive insurance arrangements and facilitate insurance-linked securities transactions.
AM Best assigned the single-parent captive an A- Financial Strength Rating and "a-" Long-Term Issuer Credit Rating, citing a balance sheet strength assessed as "very strong".
The budget outlines support for new insurance solvency rules and greater disclosure standards, but focus on growth sectors—such as low-altitude aviation and autonomous vehicles—will bring new opportunities...
