www.captiveinternational.com INTERVIEW 7
“There have been some significant changes
recently as a result of the latest tax bill in the
US, and we are studying the details of it,” says
Ruwan Jayasekera, head of the Insurance
Supervision Division at the Cayman Islands
Monetary Authority (CIMA).
Based on what he has heard from the industry
and trends CIMA can identify, Jayasekera
stresses that although the legislation was only
passed in December, corporates will have been
aware it was coming and would have factored it
in when carrying out feasibility studies.
“The fact that we ended the year with 33 high
quality new issuances means that even those
US corporates aren’t really worried about these
tax changes,” he says.
In fact, Jayasekera notes, when a new licence
application is submitted, one of the factors
CIMA considers carefully is the extent to which
tax is a motivator. Jayasekera emphasises that
there has to be a genuine business purpose and
risk mitigating factors behind the application.
In view of this, he doesn’t foresee the new US
tax law having a big impact on Cayman’s captive
industry. Instead, he says, the domicile is
seeking ways to make itself more competitive—
whether that be through making the application
process for new licences more efficient or
tweaking legislation as required in 2018.
The sector seems to have succeeded in doing
this last year. In 2017, Cayman licensed 33
new insurers compared with 39 in 2016 and
22 in 2015. Included in those new licences
were 27 new class B insurers (captives and
other commercial re/insurers) and six class C
insurers (special purpose insurers).
The domicile did have a few surrenders and
cancellations of insurance licences, largely
due to consolidation in the healthcare sector,
maturing programmes and catastrophe bonds.
Altogether there was a total of 696 class
B, class C and class D (reinsurers) licences at
the end of the year. Pure captives and group
captives represent the two main categories
in the domicile, with 317 and 121 companies,
The total premiums of Cayman’s insurance
industry were $12.4 billion as of December 31,
and total assets were reported at $61 billion.
As it has been for some time now, the Cayman
Islands continued to be the leading jurisdiction
for healthcare captives in 2017; this sector
represents more than half of all captives
Medical malpractice liability is the largest
primary line of business in the jurisdiction, with
“The fact that
we ended the
year with 33
even those US