Cell Captive
Turning an existing lending business into an insurance revenue stream.
- THE OPPORTUNITY
- An established credit lender was already originating the underlying demand for credit life insurance through its own loan book, but the insurance economics sat outside the business. The opportunity was to build an insurance proposition around that existing customer base, generating additional revenue, sharing in the underwriting profits and ultimately retaining the risk through the group’s own cell.
- The diagnosis
- The existing lending business provided a natural distribution channel, an established customer base and a clear insurance need. The challenge was to structure an insurance business that could integrate with the lending operation while making the economics, underwriting, pricing and risk retention work.
- The intervention
- Business case
- Product strategy
- Cell structuring
- Pricing framework
- Underwriting rules
- Distribution model
- Claims and risk framework
- The result
Own cell = New insurance revenue stream
Credit life policies sold through the group's existing loan book, with the underlying risk ultimately retained through its own cell.