Cenfri will be hosting a virtual workshop on the potential of cell captive insurance for sub-Saharan Africa with specific focus on the role this model can play in helping to address the structural constraints facing many insurance markets, and players, in the region.

What is cell captive insurance?

Cell captive insurance is a relatively new concept. It grew out of the captive insurance concept, where a corporate entity self-insures its own assets by setting up its own licensed insurance subsidiary. Under a cell captive arrangement, a cell captive account is created on the books of a licensed cell captive insurer and a cell owner buys a special class of shares in the cell captive insurer that enables it to fulfil may of the functions of a traditional insurer.

Why cell captive insurance?

The cell captive vehicle could become a highly impactful regulatory model as it enables innovators and insurtechs to enter the market safely by leveraging an existing insurer’s license. Cell owners retain full control over the insurance value chain and share in the profits earned on insurance business conducted in the cell. We believe cell captives can play a key role in capacitating new market entrants in terms of skills transfers and administrative support, thereby enabling innovators to focus on their primary value proposition.  We recently published a report which explores the potential role of cell captive insurance in Sub Saharan Africa.

Why should you attend the workshop?

As you may be aware, apart from the South African market, the cell captive model remains nascent in SSA. However, interest in this model has been growing steadily and a number of stakeholders have already indicated they are actively exploring the potential and applicability of cell captives within key SSA markets.

Our interactive cell captives workshop in collaboration with Simply, a prominent cell captive in South Africa, therefore aims to provide insight into the cell captive model and provide interested parties with the opportunity to engage directly with an established cell captive to learn from their experience.

This event took place in November of 2019. If you want to know more about this work, you can contact comms@cenfri.org or read about it here.