Marsh launches product allowing organisations to open their own insurance company

Global broker Marsh has announced the launch of ReadyCell, a simplified risk financing product that allows organisations of all sizes to quickly open their own insurance company.

Many organisations are interested in making self-insurance a part of their risk management strategy, but the regulatory and approval processes involved in an organization forming its own insurance company can be lengthy and cost-prohibitive, Marsh said.

Marsh’s ReadyCell features a proprietary platform that uses AI-powered “know your client” technology and has received conditional pre-approved regulatory licensing from the District of Columbia Department of Insurance, Securities and Banking. This will streamline the licensing process for forming individual insurance companies, Marsh said.

The global broker said that ReadyCell allows organisations to form their own insurance company “within minutes” as part of its Mangrove Protected Cell Facility in Washington, D.C. This means organisations can immediately begin to insure a single line of coverage or a single layer within a larger insurance program. They can also keep their insurance company on standby for up to 18 months, ready to assume risk when needed.

“With ReadyCell, Marsh is harnessing the power of AI technology to remove the barriers for more organisations to take greater control of their risk management, enabling them to mitigate uncertainties in the commercial insurance market,” said Ellen Charnley, president of Marsh Captive Solutions. “This is part of our overall strategy to drive innovation and lead the digital evolution of the captive insurance sector.”

“Although designed for organisations of all sizes, ReadyCell’s simplified process, cost efficiency, and expert support make it an especially attractive tool for small to mid-size businesses, many of which are either unaware of the captive concept or believe it to be an alternative for large organisations only,” said Denise Perlman, president of Marsh McLennan Agency. “By increasing access to self-insurance options, more firms will be able to manage their risk and insurance costs on their own terms.”

Marsh recently announced the appointment of Andy Stirk as US chief growth officer. Last month, the company announced a collaboration with Beazley to offer additional professional indemnity liability coverage to construction contractors based on their ESG performance.

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