Despite growing concerns about the challenges facing captives domiciled in the Cayman Islands, Conor Jennings, managing director of Captiva Managers, tells Captive International that the overall picture is positive.
During the recent Insurance Management Association of Cayman’s captive insurance event, there was some debate about if the current soft market will challenge Cayman captives.
“The vast majority of captives in Cayman are large and have been in existence for many years. These companies have seen plenty of rate fluctuations in the past and are here for the long run,” Jennings stated.
This doesn’t exclude healthcare captives located on the island. Jennings stressed that due to the Affordable Care Act in the US, Cayman has already weathered the recent spate of mergers and consolidations in the healthcare market.
“The companies that exist now are larger and stronger than ever and better able to handle whatever the new US administration comes up with next,” Jennings added.
However, this doesn’t mean there are no challenges facing Cayman captives, as Jennings believes that international regulatory and compliance standards means that “there is no level playing field with regards captive domiciles.”
“The non-US jurisdictions have to follow far more rigorous standards than the US," he said. "This affects the cost and ease of doing business.
“A level playing field between the US and non-US captive domiciles will only happen if the new US administration wants it to happen. It hasn’t happened in the past, but who knows? Perhaps the new US government will want to be in line with international compliance standards,” Jennings concluded.
Captiva Managers, Cayman Islands, Conor Jennings, IMAC, Cayman Captive Forum, Insurance, Captive, North America, Regulation, Affordable Care Act, Healhcare