“THE CAYMAN CAPTIVE FORUM HAS WIDELY BECOME
KNOWN AS THE BEST OF THE CAPTIVE INSURANCE-SPECIFIC
CONFERENCES ON THE GLOBE.”
you can run that off or merge it into your current captive. You can use
the captive to smooth out the disruption in the industry.”
According to MacKay, the conference organisers try to look at what
is going on at the moment and what is pertinent to people, and then
put on presentations that reflect that. As a result this year there will
be a fair amount of looking at mergers and acquisitions and how to
make things run as smoothly as possible.
MacKay points out that there’s a lot of changes going on for captive
managers right now, with increased compliance reporting and
tax information gathering including the impact of FATCA and CRS
reporting requirements. That changes a lot and also requires the
insurance companies to do more reporting.
“Obviously, what we’re trying to do is not get on the blacklist of the
OECD,” MacKay adds. “Cayman as a jurisdiction has substantially
more compliance requirements in comparison to other jurisdictions
like the US but there’s always that perception that we’re a tax haven—
which we’re not.”
Arbo adds that as far as he is concerned, overall the Cayman captives
market has seen a great amount of innovation in terms of new uses in
The Cayman Captive Forum—a potted history
In 2017 the Cayman Captive Forum celebrates its 25th anniversary. It
started life in 1993 as a small event that attracted a fraction of the people
who will attend this year—and has grown in leaps and bounds since that
quiet first gathering of members of the Cayman captives industry.
This year 1,400 specialists including captive directors, CFOs, risk
managers, service providers and captive managers from around the
world will converge again in the Cayman Islands to discuss the issues
most pressing to the captive insurance industry.
Here is a short history of the event, and the other events that it has
been affected by.
• 1966: The Cayman Legislative Assembly passed the Banks and
Trust Companies Law of 1966, which laid the basis for offshore
• 1979: The Cayman Islands Insurance Law is passed, designed to
attract international insurance business to Cayman.
• 1993: The first Cayman Captive Forum takes place.
• 1994: IMAC creates its Educational Scholarship Trust Fund to assist
with the post-high school education of young Caymanians.
• 2003: IMAC takes over the running of the forum, announcing that
any profits will go back to its scholarship fund and IMAC members.
36 cayman captive 2018
the last number of years, allowing it to gain wider appeal than would
have otherwise been possible had it decided to rest on its laurels.
Globally, the traditional insurance market has been soft for an
extended period of time now and Arbo thinks that this trend is clearly
not sustainable, especially in light of the major weather events which
the market has seen this year. Of course, as the traditional market
hardens and starts to experience higher premium levels and less
access to coverage, the interest in captive solutions takes a decided
turn upward and the innovation which Arbo mentions is only going to
exacerbate that trend.
“In my mind, the Forum Committee of IMAC needs to continue doing
a great job of staying in tune with the changes taking place in the
wider industry, not only here in Cayman but globally, in order to keep
the forum content relevant to the users and influencers who attend the
forum each year and appeal to new audiences,” says Arbo.
“The only thing left to do will be to find a way to expand the physical
facilities available for the forum site in order to allow the registration
figures to grow even further than the current 1,400—‘we’re going to
need a bigger beach!’.”
• 2004: Hurricane Ivan hits the Cayman Islands as a Category Five
storm, causing widespread damage. 85 percent of the buildings on
the Cayman Islands are damaged, either from high winds or the
storm surge that hits the area. Total damage comes to $2.8 billion.
Despite this the Cayman Captive Forum goes ahead in the wake
of the hurricane, the first major event since Ivan that shows that the
Islands are back in business.
• 2009: IMAC’s scholarship fund tops $1 million for the first time.
• 2010: An updated version of the Caymans Islands Insurance Law is
passed, aligning Cayman law with international law, strengthening the
regulatory powers of the Cayman Islands Monetary Authority (CIMA),
enhancing protection for policyholders in Cayman’s domestic market
and facilitating Cayman’s further development of reinsurance and
insurance-linked securities business.
• 2012: The Cayman Islands Insurance Law comes into force.
• 2017: IMAC announces that following an excellent year for new
insurer licences issued in 2016 (39), the Cayman Islands insurance
industry has set a brisk pace to new formations so far in 2017 with 23
new licences issued. In the third quarter there were seven new class
B formations which include two third-party insurers. For the whole of
2017 to date there have been 20 class B licences issued, 11 of which
represent third party insurers, and three class C licences.
JodiJacobson / iStock Photo