cayman captive 2018 3
CAYMAN CAPTIVE IS PUBLISHED
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PUBLISHER: Robin Johnson
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Cayman Captive – ISSN 1745-851X
Cover Image: hairballusa / iStock Photo
Building on solid ground
As 2017 comes to an end the Cayman Islands and its captive insurance market can
afford to take a deep breath and look back at what has been a very interesting 12
The insurance industry is still assessing the effects of a year of natural catastrophes
to remember. Hurricanes Harvey, Irma and Maria pummelled the Caribbean and the US, leaving
Puerto Rico badly battered. Cayman escaped the worst of the storms, but the cost to the re/
insurance industry as a whole is still being assessed.
The impact on the captive insurance market remains uncertain as this article was being
written, but it would be fair to say that prudent insurers are watching events closely, especially
as the initial third quarter 2017 results have shown a lot of red ink leaking all over the place from
natural catastrophe-related losses.
All of this comes at a time when captive insurance domiciles are appearing in an increasing
number of places. Almost two-thirds of the states in the US now have captives-friendly
legislation, a number that is bound to grow as more states realise the benefits of having a
captive. So far, as one article in this publication stresses, the government of the Cayman
Islands realises the dangers of such competition and has been working to keep Cayman
competitive in the market.
One development this year was the election on Cayman on May 24. The People’s Progressive
Movement lost several seats but retained power as part of a government of national unity,
with Alden McLaughlin retaining his position as Premier. The stability of this coalition is being
watched closely by all interested parties on Cayman.
Given the importance of healthcare to the captives industry on Cayman, a lot of eyes are also
on the US, where the health of the Affordable Care Act (ACA) is being anxiously monitored.
The Trump administration’s efforts to scrap the ACA have so far all been blocked by Congress,
but further attempts to weaken the act are expected from the administration. Further action is
expected in the year ahead and will be closely monitored from all sides, not least in Cayman.
In the meantime in this issue we look back at the history of the Cayman Captive Forum,
an event that started off 25 years ago as a small gathering in a not particularly large room.
This year’s attendance will be around 1,400 people as the best and brightest in the captives
industry assemble to hear the latest news and views about the market and the year ahead.
It’s been a spectacular success story, evolving from small beginnings into such a great event
and IMAC are to be congratulated for all their hard work over the past two and a half decades.
Much of the profits from the event will be ploughed back into IMAC’s Educational Scholarship
Trust Fund to help the captive managers of the future—long may it continue.
Marc Jones, deputy editor