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The Cell Concept

Driven by a strong Risk Management philosophy, through an Enterprise Wide Risk Management (EWRM) approach Lidwala Insurance Company also offers insurance Alternative Risk Transfer (ART) solutions which lie outside the realm of traditional or conventional insurance.

On the strength of the above statement and innovation, Lidwala come up with a very interesting product known as the Cell Fund Product, which will be discussed in detail below.

The Cell Fund Product allows the client to effectively set up a fund for self-retained risks with Lidwala to finance losses falling within the self-retained limit. Client can focus on its core business by delegating this function of risk management to Lidwala Insurance. Client must effectively embrace the risk management philosophy in the organization.

Lidwala Insurance Company administers two types of cell funds, Contingency Cell Funds and Protected Cell Funds.

The main advantages of a cell fund over the conventional insurances can be briefly explained as follows;

  • Client effectively set up a fund for self-retained risks with Lidwala to finance losses falling within the self-retained limit.
  • Access to reinsurance services should client wish to purchase re-insurance protection that will kick in after the exhaustion of the fund.
  • Client enjoys specialised service support to ensure optimal growth of fund through:- risk structuring, prudent management of claims, risk management services, investment of the fund
  • At the end of each year, the Company prepares an Income statement & Balance Sheet for each Cell.
  • Client retains the risk and benefits from the underwriting profits, reserves and investments proceeds generated from the fund.
  • Product can be customised to suit the client‘s risk management needs.
  • Client has the option to be involved in the investment decision of the fund. (through sitting in the investment committee).
  • At the end of each year, the fund is rolled over into the following year to finance losses falling in the renewal period thereby building the client’s own risk carrying capacity.
  • Security of funds through the signing of the Cell Fund Holder Agreement (for protected cells) and issuance of the Contingency Cell Fund Certificate (contingency cells).
  • Client involved in managing own risk through a clearly structured risk management programme.
  • It is an easy way of insuring complex risks that may be difficult to place in the conventional market or if capacity is available, the premiums will be very high.

The Cell Fund Product is here to make a difference in your organisations risk appetite and Lidwala Insurance Company is more than willing to take you through that journey.