cayman captive 2018 11
The sum enhances
the value of the parts
The Cayman Captive Forum celebrates its silver anniversary in
an environment of stability and growth, writes Hon. Tara Rivers,
Minister for Financial Services and Home Affairs.
The use of these classes speaks to the ongoing and successful
partnership between government and CIMA that maintains Cayman’s
competitiveness, by ensuring our requirements and insurance fee
regime are in line with market rates.
On another positive point, as our local regulator, CIMA prides itself
on providing effective oversight that meets global standards. With this
as its objective, and in recognition of the growth of captives, CIMA
has received additional funding from government that it will use for
additional resources to monitor the sector.
By providing these captives-specific resources, Cayman already is a
very attractive place for growth. But government takes a holistic view of
our jurisdiction’s stability because, to paraphrase a well-known maxim,
the sum enhances the value of the parts. For example, many persons
in financial services sectors want and appreciate good infrastructure,
and Cayman certainly has that. We know it builds the confidence that
captives, and other financial services sectors, must have before they
choose to have physical presence here.
To that end, Cayman is advancing several capital projects, such
as the redevelopment of our airport and the construction of a modern
cruise berthing facility. Our Premier, the Hon. Alden McLaughlin,
speaks more about these projects in his foreword, but I’m delighted
to say the obvious: these capital projects certainly boost our
business environment. They reinforce that our jurisdiction provides
an exceptional platform for success for all types of business,
During the Cayman Captive Forum, we’ll hear about the global
developments in legislation, regulation and the market that affect
captives today, and into tomorrow. These developments are factored
into Cayman’s advances in this sector, and they are the reason for
Cayman’s collaborative approach. Government firmly believes that our
model allows a futuristic view of captives that is favourable to mutual
success, and we welcome input from you and other stakeholders as we
collaboratively and effectively work to achieve our objectives.
The celebration of any silver anniversary is a momentous
occasion. For you and others in the captive insurance industry
who are reading this publication, this is especially evident
during the 25th year of the world’s largest gathering of captive
As Cayman Captive Forum marks this milestone, it has the distinct
honour of also being the largest conference held in the Cayman
Islands—a title it has held for quite some time. The Insurance
Managers Association of Cayman (IMAC) should feel extremely proud
for consistently staging an event that continues to grow stronger every
year, which reflects the strength of our captives sector.
According to our financial services regulator, the Cayman Islands
Monetary Authority (CIMA), we already have seen 24 licences issued
for captive insurance companies as of September 30, 2017. This means
that for the second consecutive year, we have eclipsed our 2015 total of
22 new licences. With the busy period for registrations still to come, the
captives sector is set for further growth.
The types of new licences coming through should also give further
confidence in the way forward. I am pleased to see significant uptake
with portfolio insurance companies (PICs), after the government
introduced PIC legislation in 2015 to give you greater flexibility.
Nearly 10 percent of this year’s newest entries are PICs. Available for
use by the international insurance market, this new product ranks with
offerings from other jurisdictions, including the Delaware Series Limited
It should not be overlooked that PICs are a result of Cayman’s
collective approach to financial services. CIMA and industry both
provided input to government from their respective positions, which
resulted in legislation that is well developed and most importantly, is
I am also happy to report that the majority of our 2017 new licences,
about 75 percent, are in the class B(i) and B(iii) insurer categories.