“Latin America has been opening up to captives. It is a very
different market from North America, concentrated on property
and bancassurance and for the most part very protective of local
insurance carriers, agents and brokers,” she noted.
“Nevertheless, there is huge potential for Latin American businesses
to make use of captives and Cayman’s proximity to Miami and
existing relationships in other financial sectors must be explored to
expand Cayman’s captive remit.”
At the same time, the recent growth in Cayman captives
demonstrates that North American businesses, particularly midsized,
remain untapped to an extent and Cayman has tried and
tested captive models to offer.
Artex client services director Kevin Poole agreed that the captive
industry is currently experiencing strong growth.
“We’ve also been experiencing growth in group captive membership,”
Poole said. He noted that there are whole new industries coming to
the fore such as the shared economy space. “We are definitely seeing
a number of opportunities for captives in different industry sectors.”
Howard Byrne, director of captive services at Aon Insurance
Managers, referred to the soft commercial property & casualty market
as one of the challenges facing the industry.
“The pricing is so competitive in the commercial market that
those traditional lines of business are not being run through captive
programmes. The captive programmes are not being set up to write
those lines,” Byrne said.
Instead, he sees a more diverse client base than before looking at
varied programmes and insurance and reinsurance solutions.
“We are looking in the healthcare space and healthcare clients,
looking at managed care,” he said. Aon is also looking into the B(iii)
22 cayman captive 2018
space (captives with greater than 50 percent non-related business),
looking at special purpose reinsurance companies falling under the
B(iii) licences and that do not have a multinational or global mandate,
but are focused on a particular market (eg, US) or line of business.
Kara Ebanks, chief analyst in the insurance division at Cayman
Islands Monetary Authority, noted that so far in 2017, most of the new
captive formations, about 52 percent, have included unrelated risk
lines of business and non-traditional risk.
“The captive model seems to be diversifying in that there is more
sophistication, and more complex structures in place,” she said.
The role of the Cayman Captive Forum
The Cayman Captive Forum has been invaluable to the captives
industry, Brosnihan said. She has been involved in the forum for the
last eight years and has been the chair of the Forum Committee for
the last four.
The forum is fully planned and organised by IMAC, and more
specifically by the Forum Committee which consists of volunteers
from various Cayman insurance managers. She noted that the forum
is the largest captives-focused conference in the world and the
largest conference held in Cayman. “Hosting such a high quality
and high profile event certainly boosts Cayman’s reputation in the
captives space” Brosnihan noted.
The forum has made, and continues to make, a tremendous
contribution to the local economy, she said.
Poole, currently the vice-chair of the committee added that a large
number of captive owners take the opportunity to have their board
meetings at the same time as the forum takes place.
“When you have a large number of captive owners, it helps attract other
people to come to the conference as well,” Poole said. This helps make