Cayman Captive spoke with the Islands’ Premier, the Hon. Alden McLaughlin, about the government’s continuing commitment to the development of international business.
What sets Cayman apart from the global competition as a destination for international business?
Cayman has a network of complementary financial services that provides the resilience, connectivity and stability for solid business to flourish. And because our industry has that breadth and depth of services, we’ve accordingly attracted financial services personnel from around the world who—in my humble opinion—are second to none in their professionalism and abilities.
That diversity among the people in our financial services industry, and in the range of products and services that are available in the Cayman Islands, allows us to provide top-notch service to a diverse group of clients.
How has Cayman sought to open its doors to international business?
The way to open doors to international business is to have the right elements for growth in place: effective legislation, an independent regulatory body, and the implementation of globally accepted standards.
It also means maintaining strong communication between government and industry, in order to allow the discussion and the healthy debate that ensure an energetic, market-responsive, and client-respected jurisdiction.
What can companies expect when they come to Cayman?
They can expect a responsive government, and appropriate legislation and regulation that meets international standards as it attracts, maintains, and supports the creation of reputable business.
They can expect an industry that is knowledgeable, welcoming, and also well versed and able to apply the international standards upon which reputable business is developed.
They can also expect a comfortable lifestyle for businesspeople and their families, where the opportunities to become part of our community are clear and tangible, such as through property ownership, participation in civic organisations and—when legal criteria have been met—voting privileges.
How important is the captive insurance sector to Cayman?
Captives are very important to Cayman—as readers of the magazine may know, we are second in the world in healthcare captives, with more than $13.5 billion in premiums.
What is being done to develop the captive sector in Cayman? What level of commitment can the industry expect from the current government?
A recent amendment to our Insurance Law has created a new class for open-market reinsurer licences, thereby differentiating between captives and reinsurers. This allows us to regulate the risks inherent to different licensees in the market more effectively. Furthermore, Cayman is amending our Immigration Law, to enhance our position as an ideal domicile, with a strong workforce, for insurance products overall.
Regarding Solvency II, we are aware that almost 90 percent of Cayman’s insurance business is generated by North American-based captive insurance companies that do not carry consumer risk; as such, they require a different regulatory model. Because we know the source of our business, Cayman will continue to monitor Solvency II’s potential effect on the captive insurance market.
As a result of our legislative and regulatory positioning, industry has seen new captives redomesticating to Cayman. My government fully supports the further development of the captives sector, with the intention of increasing flow of business to our jurisdiction.
Cayman Islands Government, Ministry of Financial Services, international business