“CAYMAN’S INSURANCE SERVICE PROVIDERS ARE KNOWN FOR
THEIR RESPONSIVE, INCLUSIVE AND COLLABORATIVE APPROACH TO
DEVELOPING AND SUPPORTING NEW CLIENT-DRIVEN PRODUCTS.”
was a fi rst adopter in the insurance-linked securities (ILS) space, meshing
expertise in securitisation, insurance and capital markets to create the
most innovative structures, addressing complex risk scenarios.
A premier global fi nancial hub
The Cayman Islands is a premier global fi nancial hub, effi ciently
connecting law-abiding users and providers of investment capital and
fi nancing around the world. Cayman is an excellent extender of value for
major economies, pooling capital from around the world for investment
in assets and projects in developing and developed countries.
The World Bank Group’s International Finance Corporation (IFC) uses
Cayman funds to promote growth in emerging markets. The IFC uses
Cayman because it offers an effi cient and effective neutral platform that
enables parties from around the world with differing laws, regulations,
tax rules and customs to benefi t from doing business with each other.
Cayman is one of the few jurisdictions that meets the IFC’s stringent
standards for investments in intermediate jurisdictions. Cayman’s
Global Financial Rating has never been adjusted downwards which is
pretty rare among our Caribbean neighbours.
Power in the people
Cayman continues to do what it does best with a focus on excellence in
client services. In terms of addressing the competition, it benefi ts from
certain inherent competitive advantages such as our one-stop shop
feature and access to some of the world’s best professionals in the
areas of insurance, legal and accounting services. These are features
that our competitors cannot replicate easily.
In particular, Cayman’s insurance service providers are known for
their responsive, inclusive and collaborative approach to developing
and supporting new client-driven products, including ILS and hedge
fund and private equity-backed reinsurance companies. The access
to other key areas of fi nancial services to our captive clients—whether
it’s banking services, or accessibility to highly qualifi ed insurance
managers, world-class accountants and attorneys—is one of our key
strengths as a captives domicile.
The growth of reinsurance
Last year, Cayman Finance formally launched reinsurance as a new
industry sector, and it has been an exciting year. While still in its growth
period, the reinsurance entities established to date have already
become a signifi cant portion of all insurance-related assets under
management in the jurisdiction. This sector is primed to be one of the
areas that the jurisdiction can continue to capitalise upon.
The growth rate of new reinsurance fi rms opening in Cayman confi rms
44 cayman captive 2019
the thoughts of Cayman Finance, the government and CIMA that it is
an industry that is here to stay. Firms such as Greenlight Re, Aureum
Re, Knighthead, OxbridgeRe and more have either opened on-island or
have expanded and grown their businesses in recent years.
In order to ensure that this growth continues and is well sustained
into the future, the Cayman Finance reinsurance sector sub-committee
is working closely with the Cayman Islands government and CIMA
to make Cayman as attractive as possible to potential reinsurance
businesses, in particular by making solid efforts to enhance our
insurance regulatory framework, and by engaging with the international
standard setters such as the International Association of Insurance
Supervisors and regulatory associations such as the National
Association of Insurance Commissioners.
Fintech for insurance
A notable development for this industry sector is that late last year,
CIMA approved the licensing of an insurtech insurer. This is a third
party class B company which can be described as applying technology
to traditional insurance practices to drive effi ciencies and enhance
customer experiences, while using the internet and social media for
their distribution model that is hosted by a related party specialist.
Protecting Cayman as a jurisdiction
Organisations like Cayman Finance and the Insurance Managers
Association of Cayman (IMAC) have worked hard to represent the
jurisdiction at key international events, and these organisations along
with CIMA ensure the regulatory framework and other features are in
place to maintain the jurisdiction’s reputation as a fi rst-class fi nancial
Monitoring and addressing regulatory developments has always been
one of our strengths as a jurisdiction. The key is to strike the appropriate
balance between adherence to global standards while encouraging
economic growth of each sector. We continue to do this via a unique
partnership between the private and public sector stakeholders.
The combined efforts of the Cayman Islands government, CIMA
and Cayman Finance ensure that the fi nancial products and services
are consistently delivered to meet or exceed international standards
through excellence, innovation and balance.
Cayman Finance and its partners, including government, continue to
work collaboratively to develop innovative and effectively regulated new
fi nancial services products and services to help grow the industry, in
particular captive insurance and reinsurance.
Jude Scott is chief executive offi cer of Cayman Finance. He can be
contacted at: jude.scott@caymanfi nance.ky