Ellen Charnley, president of Marsh Captive Solutions, believes the launch of ReadyCell should significantly lower the barriers to entry to captives and can widen the appeal of cell strategies to a broader group of insureds.
ReadyCell was launched earlier this month to enable organisations to form their own cell within its Mangrove Protected Cell Facility, domiciled in Washington DC.
Speaking on the episode 99 of the Global Captive Podcast, Charnley said ReadyCell had been in development for several years.
“Our hypothesis is that because we’ve driven down the cost and lowered those barriers to entry, we’re now appealing to the segments of the market that doesn’t currently have captives,” she explained.
“Potentially those smaller companies or those middle-sized companies that have historically thought that a captive or a cell captive is just too far out of their reach from a budgeting standpoint.
“Now we’re saying: ‘Why wouldn’t you? We’ve driven those costs down and we’re making it available to you.’ So that’s what we anticipate.”
Charnley added that ReadyCell is not restricted in what types or sizes of companies can utilise it. She can see potential use cases for larger organisations that have a particular challenge on one line of business and need a “super fast” solution.
“Large organisations that don’t have a captive could easily form a ReadyCell; not know what they need it for, it can sit there on the shelf and then perhaps at their next renewal in a few months’ time they need a property policy or they need an excess layer filled or part of their programme filled with a simple policy,” Charnley explained.
“They can activate ReadyCell and they’re off to the races. So we could see a number of different use cases that are appropriate for clients.”
Marsh has launched ReadyCell using its Mangrove cell company in Washington DC, but Charnley said they were open to the possibility of rolling it out in other domiciles.
“There is no reason why we wouldn’t explore those possibilities for other jurisdictions,” she added.
“If we see it as a success and we see the need in other jurisdictions, absolutely.”
Listen to the full, exclusive interview with Ellen Charnley on GCP #99 here, or on any podcast app. Just search for ‘Global Captive Podcast’.