- Insurance Broker: A broker acts as an intermediary between clients and insurers. Their role is to understand the client’s needs, source and distribute the most suitable insurance products, and negotiate competitive terms on their behalf.
- Insurance Manager: A manager oversees the administration and regulatory compliance of insurance structures. They handle licensing, reporting, governance, and day‑to‑day operations to ensure the company runs smoothly and meets all legal obligations.
Protected Cell Companies
A Protected Cell Company (PCC) is an insurance vehicle whereby multiple 'cells' are connected to a core, creating a single legal entity. Any protected cell created has its own distinct name or designation however, it does not constitute a legal person which is separate from the Protected Cell Company.
A PCC consists of two main components:
The Core
This is the central legal entity that holds the overall license and governance structure.
The Cells
These are individual compartments within the PCC, each with its own assets and liabilities, but not separate legal entities.
PCC Benefits
Risk Isolation
Cost Efficiency
Regulator Simplicty
Speed to Market
Types of PCC
Protected Cell Companies (PCCs) are unique corporate structures that allow for the segregation of assets and liabilities between the core and individual cells. In Malta, PCCs can be formed by various types of insurance entities, including insurance brokers and insurance managers, each serving distinct roles within the insurance ecosystem.
Jatco provides both solutions, insurance broking and insurance management, through two separate entities: Jatco Insurance Brokers PCC Ltd and Jatco Insurance Managers PCC Ltd.
Jatco Insurance Brokers PCC Ltd is an approved Broker at Lloyd’s, which gives prospective cell owners the chance to access Lloyd’s for their EU business, provided they already hold Lloyd’s broker approval through a non-EU entity.
Jatco Insurance Managers PCC Ltd on the other hand is a Coverholder at Lloyd’s, which gives prospective cell owners the chance to have underwriting agreements with Lloyd’s for their EU business, provided they already hold Lloyd’s coverholder approval through a non-EU entity.
FAQs
What’s the difference between a broker and a manager
How do PCCs help in reducing operational expenses?
- PCCs allow multiple “cells” to operate under a single legal entity, sharing common infrastructure such as compliance, accounting, and governance.
- This structure eliminates the need to set up a full standalone company, significantly lowering start‑up and running costs.
- By pooling resources, PCCs reduce duplication of expenses while still offering ring‑fenced protection for each cell’s assets and liabilities.
Can PCCs facilitate direct trading in European markets?
- Yes. PCCs established in Malta benefit from the country’s membership in the European Union.
- This means that once authorised, a PCC can passport its services across EU Member states, enabling direct access to European markets without the need for separate licenses in each EU Member State.
- This creates a cost-effective and efficient route for business seeking to expand their insurance operations within Europe.
How do PCCs streamline the authorisation process?
- Setting up a new insurance intermediary company can be time‑consuming and complex. PCCs simplify this by allowing new insurance intermediary cells to be created within an already licensed structure.
- The regulatory approval process for a new cell is faster and less burdensome compared to establishing a standalone insurance intermediary company.
- This efficiency enables businesses to launch operations quickly while still maintaining full compliance with regulatory standards.
What can I expect during my first interaction with a PCC?
- You’ll begin with a consultation to assess your business objectives and insurance needs.
- The PCC manager will explain how cells work, outline the regulatory framework, and discuss the benefits of joining the structure.
- You’ll receive guidance on the regulatory application process, expected timelines, and the operational support available.
- The goal of this first interaction is to provide clarity, answer your questions, and help you determine whether forming part of a PCC is the right solution for your business.