A framework for success
With captives, and all financial services sectors, the best outcomes happen when
stakeholders work together to ensure all responsibilities are met, and benefits
achieved, writes the Premier of the Cayman Islands, The Hon. Alden McLaughlin.
as well as the preparation of bid documents, with a projected tender issue
date of late September 2017.
Statistics and projections in the Strategic Policy Statement also
underscore Cayman’s stability.
• The 2 percent reduction in duty costs, which was put in place by my
previous administration, will remain in place.
• Our national debt fell from about $574 million three years ago, to $451
million as at the end of the last fiscal year. By December 31, 2020, under
current plans, debt will be further reduced to $221 million.
• Unemployment fell from 10.5 percent in 2012 to 5.7 percent in spring
2016. It is now predicted to remain below 4 percent over the next three
Moreover, we will continue to enjoy economic growth: since 2014,
Cayman’s GDP has grown on average by 2 percent annually, and is
expected to continue that trend over the next three years.
Ultimately, we are confident that our framework and political stability will
continue to positively affect Cayman’s standing as a jurisdiction of choice
for captive insurance business.
On behalf of government I thank the members of IMAC for their
commitment to promoting Cayman’s captives sector and I also thank
CIMA, for their firm commitment to upholding the principles of sound
With captives, and indeed in all financial services sectors, the best
outcomes happen when all stakeholders clearly articulate their respective
positions and work together to ensure all responsibilities are met, and
The Cayman Islands therefore is pleased with our success in captives,
and equally pleased with the benefits provided to clients. Never content to
rest on our jurisdictional laurels, government looks forward to continuing
our dialogue with CIMA and IMAC, to ensure that Cayman’s success
extends well into the future.
cayman captive 2018 9
The Cayman Islands’ reputation as an international financial centre
has been earned over many decades, thanks to a robust financial
services industry that caters to sound business in a number of
sectors including, quite importantly, captive insurance.
Cayman’s position as a global leader in captives is founded upon a
sturdy framework for business, including legislation that gives captives
greater choice on how they are established and managed.
As a government, it’s our unique responsibility to ensure that the
legislative and regulatory framework in which our industry operates meets
the needs of clients. In doing so, however, we naturally draw upon the
expert knowledge and capabilities of our financial services regulator,
the Cayman Islands Monetary Association (CIMA); and the Insurance
Managers Association of Cayman (IMAC), which solidly represents the
industry sector. The end result is that government policy, legislation, and
regulation meet global standards as well as client needs.
In this manner, government’s framework provides a compelling business
case for captives to domicile here.
From a jurisdictional governance and stability standpoint, captives can
also note that government has a clear fiscal policy that will benefit our
key stakeholders over the next three years. In our 2018 Strategic Policy
Statement, government commits to completing a number of important
capital projects, including the Owen Roberts International Airport
renovations, and constructing a modern cruise pier and cargo dock.
The redevelopment of Owen Roberts International Airport, for example,
is well underway with the final phases of construction and the expansion
of the terminal expected to be completed in spring 2019. When finished, it
will meet increasing visitor air arrivals and form a key part of our five-year
National Tourism Plan.
In addition, we continue to make progress on creating a modern
cruise berthing facility and an enlarged cargo port. The redesign of the
piers to dramatically reduce dredging and impact on the environment is
now finished, complete with preliminary designs and cost estimations.
Prequalification of bidders and negotiations with cruise lines are ongoing,