cayman captive 2019 7
leads to success
Working closely with the Cayman Islands Monetary Authority and the Insurance
Managers Association of Cayman has helped the Cayman government maintain
its position as a leader in captives, writes Premier the Hon. Alden McLaughlin.
Spring 2019 will see the completion of the full airport renovation,
which forms an integral part of Cayman’s five-year National Tourism
Plan. The modern airport will almost triple its current capacity, thus
supporting an increase in visitor air arrivals and facilitating even
smoother Immigration and Customs processes.
Another key aspect of the tourism plan is for government to continue
its progress on the development of two cruise piers and associated
enhanced cargo facilities in the Cayman Islands. These works will
minimise environmental impacts, such as anchor damage to the reefs
in George Town Harbour.
Negotiations with cruise companies regarding financing and other
elements remain on track. Government has also narrowed project
bidders to three finalists, with the winner expected to be announced
by December 2018.
In addition to these advancements on capital projects, Cayman’s
economy remains strong. As a key indicator, the downward trend in
Caymanian unemployment since it reached a peak of 10.5 percent in
2012 has continued. The most recent figure of 5.3 percent, according
to the Spring 2018 Labour Force survey, shows unemployment has
effectively been halved since that peak.
In short, a holistic view of the Cayman Islands shows an economically
strong jurisdiction, built on a robust framework that is well suited for
the presence of captive insurance business.
On behalf of the Cayman Islands government I applaud the members
of IMAC for their dedication to promoting Cayman’s captives sector. I
also thank CIMA for its steady commitment to upholding the principles
of sound business.
Like with other financial services sectors, captives can enjoy the most
success when all stakeholders contribute to the overall position of the
jurisdiction—ensuring all viewpoints are considered and collaboration
is fostered to meet all responsibilities and achieve objectives.
The government does not take the success of our captives sector for
granted and is committed to working with CIMA and IMAC to maintain
the Cayman Islands’ position of strength, built upon satisfied clients
and our adherence to global regulatory standards.
Captive insurance is one of many important sectors in the
global financial services industry and the Cayman Islands
is proud to be a leading jurisdiction, with a wealth of
experience and technical knowledge in place.
The Cayman Islands’ reputation as a worldwide leader in captives,
and indeed as a major international financial centre, rests upon a
proven record of attracting sound business and aptly catering to the
needs of our clients. We take pride in nurturing a robust business
environment featuring legislation that offers managerial and structural
freedom for captives and importantly, also maintains global regulatory
While legislation and regulation are the ultimate responsibilities
of any government, the Cayman Islands government does not
work in isolation. We carefully consider the input of other important
stakeholders, including our financial services regulator, the Cayman
Islands Monetary Authority (CIMA); and the Insurance Managers
Association of Cayman (IMAC).
CIMA and IMAC both offer tremendous insight and expert
knowledge on the captive space. By drawing upon their collective
wisdom, government is well positioned to enact policy, legislation, and
regulation that both meets global standards and addresses the needs
of those looking to domicile captives in the Cayman Islands.
As a result, our framework underpins the compelling business case
for the Cayman Islands being the jurisdiction of choice for captives.
Cayman also takes pride in our overall governance and stability, as
government’s fiscal and capital policies clearly demonstrate.
The government’s sound fiscal stewardship has resulted in an overall
government surplus topping $200 million for the first six months of
2018; and we continue to set aside money to build our reserves. We
also continue to pay down government debt and have, in fact, repaid
almost $20 million over the course of this year alone. Government will
make a significant further step in that direction next year.
The surplus is also funding our capital projects that are under
way. We remain committed to completing multiple capital projects,
including the Owen Roberts International Airport renovations, and
constructing a modern cruise pier and cargo dock.