The insurer will pursue a further appeal after an appellate authority confirmed a disputed GST demand and penalty relating to the period between July 2017 and March 2022.
Both insurers responded to a Financial Times report on their cover for the trader, which is accused of raising bank credit against invoices for trades that did not exist.
The insurer said the order is not expected to have a material adverse impact on its financial operations at this stage, as it intends to challenge the decision.
The broker expects the structure to appeal to smaller firms exploring captives, larger corporates pursuing phased ownership strategies and ILS sponsors.
The proposed protected cell company framework could broaden access to captive insurance arrangements and facilitate insurance-linked securities transactions.