Self insurance facility created by Oxygen
by Richard Kilner
Story link: Self insurance facility created by Oxygen
Oxygen Insurance Brokers and Close Wealth Management Group are going to launch a self insurance facility aimed at business and professional practices within the UK which will allow them to reduce the rates of their insurance premiums.
The Close facility will enable clients to have individual protected cells set up within a PCC (protected cell company) based in Guernsey.
The island was chosen because of its favourable legislation, according to Claire De Feu, CWMG’s Senior Product Development Manager.
Oxygen’s Financial Risk chief Andrew Wallin observed that though self insurance was not a newly thought up concept the costs involved for businesses except the largest companies were prohibitive, and is pleased that the new facility will enable more businesses to save money without exorbitant administration or set up costs.
Companies taking up the scheme will be offered a minimum annual premium of £200,000, a lower cost than more traditional forms of insurance.
Wallin explained the added bonuses of combining more usual insurance programmes with the PCC solution were that the PCC is extremely cost efficient and that the captive concept, normally the preserve of large companies only, had been simplified, allowing it be applied to a wider range of companies.
Premium that is not spent remains within the PCC, and can either be reused or withdrawn, speeding up the savings for clients.