Plain words
Fully Owned Captive or Protected Cell? Points to consider
A captive is an insurance company that is owned by the organisation it insures, or by a group of related organisations. There are two main ways to set one up, and they are quite different. Read the two descriptions first, then the points to consider. This page never changes your score.
The two routes
A fully owned captive
Your group sets up its own insurance company and owns all of it. The company holds its own licence, has its own board, and your group decides how it is run.
A protected cell captive
A protected cell company (PCC) is one legal company with a shared core and any number of cells. By law, each cell's assets and liabilities are kept apart from those of the other cells. A cell is not a separate company. Your group has one of the cells. The shared core is owned and run by a specialist company, called here the company that holds the cells.
On this page, “a protected cell captive” and “a cell” mean the same thing.
Points to consider
| Point | A fully owned captive | A protected cell captive |
|---|---|---|
| Control | Your group owns all of it and makes every decision. | It can feel like less ownership and control, because the company that holds the cells runs the shared core, and you rely on it. |
| Running it | You, together with a captive manager, run it: the accounts, the reports, the board meetings and the filings. | The company that holds the cells provides much of the running. What it covers, and what it charges for, is set out in your agreement with it. |
| Separation | It is your own legal company. | By law, your cell's assets and liabilities are kept apart from those of the other cells. A cell is not a separate company. |
| Which risks | Whatever the company's licence allows. | Your own group's or related parties' risks only. |
| Changing route later | Nothing to change: it is already a fully owned captive. | Moving to a fully owned captive later is possible, but often challenging. Treat the choice you make at the start as the one you are likely to keep. |
What is true today
We check these facts against their sources every quarter. Rules in this area are changing, so please check the source before you rely on a fact.
Labuan is currently the only Asian centre offering protected cell captives. That is Labuan's own statement, as reported in July 2026.
Sources: Labuan FSA: Protected Cell Companies; Insurance Business Asia: Singapore targets captive insurance with proposed PCC framework, July 2026
Singapore's regulator consulted on a framework for protected cell companies from 7 July to 7 August 2026. It is a proposal. It needs new legislation, and no start date has been announced. It is not law.
Sources: Monetary Authority of Singapore: media release on the consultation, July 2026 (Consultation Paper P013-2026); Insurance Business Asia: Singapore targets captive insurance with proposed PCC framework, July 2026
A protected cell captive insures only its own group's or related parties' risks.
Sources: Labuan FSA: Guidelines on Captive Insurance Business (2023) and FAQs
Moving from a protected cell captive to a fully owned captive later is possible, but often challenging. Think carefully from the outset how this may complicate your risk management strategy.
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