Captive insurance, traditionally associated with larger organizations due to resource requirements, is gaining traction among small to mid-sized businesses grappling with one of the most challenging property insurance markets in decades.
ReadyCell, a risk financing product launched by Marsh Captive Solutions, aims to democratize access to captive insurance for organizations previously deterred by cost considerations. Ellen Charnley, President of Marsh Captive Solutions, explained that the innovative platform leverages artificial intelligence (AI) to streamline the formation of captive entities.
Charnley noted that ReadyCell is a response to the market perception that client captives were often deemed too expensive or less cost-efficient for many organizations. The platform seeks to reverse the traditional captive formation process, allowing organizations to establish their own insurance company within minutes through Marsh’s mangrove protected cell facility in Washington, DC.
The AI-powered platform simplifies complex regulatory approval processes, enabling organizations to immediately secure coverage for a single line or layer within a broader insurance program. Charnley emphasized that ReadyCell caters to businesses of all sizes and industries, with a particular focus on smaller companies interested in exploring captive insurance.
ReadyCell, a three-year initiative by Marsh, significantly reduces the time and cost involved in forming a captive entity. Charnley highlighted that the platform’s ease and cost efficiency empower organizations to set up captives promptly, keeping them ready and available for potential needs. Captives can remain empty for up to 18 months, providing flexibility for future decisions.
The incorporation of AI into the ReadyCell platform allows Marsh to lower costs and expedite captive formation. By utilizing public data, proprietary risk assessment algorithms, digital signatures, and AI, Marsh can efficiently evaluate applications and generate human-friendly risk assessments. Charnley emphasized that ReadyCell’s simplicity is intentional, aiming to enhance cost efficiency and lower barriers to entry.
The platform encourages organizations to consider captive insurance as a viable tool in their risk management toolbox, even if they are uncertain about immediate needs. ReadyCell’s affordability makes it an attractive option for businesses looking to proactively address future insurance requirements. Clients can also expand coverage by adding more lines to the cell as their needs evolve.
