As provided under the PCC act, a PCC can be used to carry out two types of global business namely global insurance business and investment funds (i.e. collective investment schemes).
- Life assurance companies can legally separate the assets of life, pension and individual policyholders.
- Composite insurers - where the assets of life insurance business need to be legally separated from those of non-life business.
- Conglomerates - where several cells are established, each holding a particular insurance exposure of the parent and segregated, for example, in relation to the various geographical locations, corporate division or types of risk of those exposures.
- Insurance and reinsurance - where insurers or reinsurers can accommodate the differing needs of clients.
- Reinsurance - where finite reinsurance contracts and securitization issues can be placed within separate cells.
- Multi-nationals - where companies can operate their captive insurance, treasury and other functions globally in a single entity using the same core capital.
- Captive insurance companies - segregate distinct areas of risk and activity into different cells.
- Rent-a-captive - where the owners of the PCC offer capital financing to clients, who, because of their own size, would find it impractical to set up their own individual captive insurance arrangements.
This type of structure is particularly attractive for global business funds (collective investment schemes) with various classes of shares, umbrella or multi-class funds, affording each individual share class the same limited liability that would be obtained if separate corporate structures were used for each different category of investor. (Note: it is a requirement that there is pooling of investors' funds at the level of the cell.)