positions due to advantages from economies of scale.
The jurisdiction has continued to see formation of new
healthcare captives, which is an indication of a settling
US healthcare industry and Cayman’s continuing leading
position in this segment.
In general, captive insurance structures are being put to more
sophisticated use by their owners. Therefore, CIMA strives to ensure
that Cayman Islands’ insurance sector is regulated in accordance
with international best practices, while having consideration for the
competitiveness and required innovation to remain as one of the top
A formal framework
On August 4, 2018, CIMA signed a memorandum of understanding
(MoU) with the National Association of Insurance Commissioners (NAIC).
The signing took place during the International Insurance Relations (G)
Committee 2018 NAIC Summer meeting in Boston, Massachusetts. As
a formal framework for mutual assistance, and to facilitate the exchange
of information, the MoU is designed to help insurance supervisors in
the US and Cayman Islands in better understanding and coordinating
compliance with applicable laws, regulations, rules and requirements.
It also provides technical assistance to maintain efficient, fair, safe and
stable insurance markets for the benefit and protection of policyholders
in each jurisdiction.
As a result of this agreement, CIMA welcomes the opportunity for further
engagement with other jurisdictions, with a view to execute additional
bilateral MoUs for the betterment of the insurance sector.
New specialist joins the division
Reinsurance specialist Peter Fox has been appointed to the Insurance
Supervision Division, effective June 8, 2018. Fox’s position further
strengthens the existing senior management team for the Insurance
Supervision Division of Ruwan Jayasekera (head of division); Suzanne
Sadlier (deputy head); and Razaak Busari (deputy head).
Fox’s career spans nearly 46 years in the insurance industry. Before
joining CIMA, he served as senior manager with KPMG in its UK office
from 2008 to 2011. During his time there, he provided extensive audit
and consulting advice to Lloyd’s and London Market companies. This
included a blend of mergers and acquisitions, Solvency II and asbestos/
health hazard/pollution claim advice to clients.
He was designated as the principal point of contact for UK originating
captive consulting activities. He also served as the lead mentor for newly
qualified actuaries and was the national lead in the actuarial graduate
recruitment programme. Additionally, he was elected by KPMG’s
16 cayman captive 2019
Financial Services group to represent views to the UK
board of KPMG.
In 2012, Fox joined American International
Group to work as a global pricing actuary where he
took on a special project to harmonise worldwide pricing
in the enterprise segment of the business. From 2013 to 2017,
he worked with International General Insurance where he held the
positions of group chief actuary and group chief officer. Other previous
employers include Aon Insurance Brokers, Riverstone Management,
the UK Actuarial Profession and Legal & General Assurance Society.
Insurtech is dominating the trends in emerging risks being covered
by international insurance companies with a particular focus on cyber
risk, blockchain technologies and data analytics. As key stakeholders
in the emergence of these technologies and the associated impact on
re/insurance companies, many international regulatory authorities are
undertaking reviews of their regulatory frameworks as appropriate to be
in a position to identify the risks and challenges posed by insurtech—as
well as the potential benefits.
CIMA has received several insurtech-related enquiries from existing
and potential licensees and is continuing research and monitoring
developments closely to ensure it is positioned to regulate the evolving
landscape as appropriate.
The Authority is seeing an increase in reinsurance companies
establishing in the Cayman Islands, predominantly to provide coverage
of life and annuity products but also for property and casualty risks.
In addition, several global mid-tier reinsurance companies have
re-domiciled to the Cayman Islands from established reinsurance
jurisdictions and CIMA expects that this trend will continue.
The Authority continues to regularly participate in international
regulatory and risk conferences to ensure it is well positioned to be
at the forefront of emerging regulatory standards, to engage with the
captive and international insurance industry, and to collaborate with
other stakeholders to identify areas where greater efficiency, flexibility
and innovation are necessary while maintaining a robust regulatory
Given this robust, yet flexible and competitive, regulatory regime, its
infrastructure and high levels of expertise and experience, the Cayman
Islands will maintain its position as a leading world-class jurisdiction for
Cindy Scotland is managing director of the Cayman Islands Monetary
Authority. For more information visit www.cimoney.com.ky
“THE JURISDICTION HAS CONTINUED TO SEE FORMATION
OF NEW HEALTHCARE CAPTIVES, WHICH IS AN INDICATION OF
A SETTLING US HEALTHCARE INDUSTRY.”