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The cell captive market has developed over the past 30 years in response to the need and aspiration of both Intermediaries and UMAs to have an increased role in the underwriting activities of their clients. Risk finance companies are ideally positioned to fulfill this need by providing independently owned cells within their companies that effectively operate as small insurance companies. They are therefore able to underwrite risks, issue policies, and pay claims whilst complying with all necessary insurance laws and regulations. ​This provides the owners of these cells with the opportunity to build capacity, share in the benefits of the insurance activities, and service niche markets more effectively. The benefits of these structures are that they offer cell owners the ability to operate as insurers with relatively low levels of capitalization and without having to take on the regulatory compliance and risk management requirements that are demanded of insurance companies. There are a small number of cell captive or ‘risk finance’ insurance companies in South Africa but these have grown substantially in line with the growing need for their services. ​Cell captive companies broadly provide insurance cover for the cell owner's own risks, the risks of 3rd parties which are placed into the cell by the owner or its intermediaries.