Captive leadership and the evolution of IMAC
As the Cayman Captive Forum approaches, the Cayman Islands is set to lead the global captive insurance industry, IMAC’s Kevin Poole (pictured) tells Captive International.
As the Cayman Captive Forum approaches, the Cayman Islands is once again preparing to take centre-stage in the global captive insurance industry. Scheduled for December 3–5, 2024, at the Ritz-Carlton Grand Cayman, the event, organised by the Insurance Managers Association of Cayman (IMAC), is one of the world’s largest captive insurance conferences. With a reputation for blending thought leadership and networking, the forum is a vital platform for captive owners, service providers, and industry leaders.
During an interview with Captive International, Kevin Poole, general manager of IMAC, reflected on the association’s history, Cayman’s growth as a global captive hub, and the enduring relevance of the Cayman Captive Forum.
Driving collaboration
“The Cayman Captive Forum is more than just a conference—it’s a cornerstone for the industry,” Poole explained. This year’s event will feature sessions addressing topics including healthcare innovations, reinsurance strategies, cyber risk management, and data-driven decision-making.
According to Poole, the forum is a powerful showcase for Cayman’s strengths as a leading jurisdiction for captives, reinsurance, and insurance-linked securities (ILS). “It’s an opportunity to demonstrate our regulatory excellence and the innovative spirit that continues to attract global attention,” he said.
IMAC’s origins date back to 1981 when it was established as the Cayman Underwriting Managers Association. Initially focused on underwriting, the group soon pivoted toward insurance management, renaming itself the Cayman Insurance Managers Association. In 1994, it adopted its current name to better reflect its expanded mandate.
“IMAC has grown alongside Cayman’s insurance sector,” Poole noted. Today, the association comprises 22 insurance managers, including those which specialise in services to the reinsurance industry, and those which provide insurance management services to insurers, reinsurers, sidecars, transformers, and other special purpose vehicles.
In the community, IMAC has always been committed to education and the development of future professionals and leaders in the Cayman Islands, through its Educational Scholarship Fund (ESF).
This year marks its 30th anniversary, and since its inception, the ESF has raised approximately CI$5 million through events and generous contributions from members and industry partners. The fund has now supported 74 young Caymanians in pursuing higher education, including nine 2024 scholarship recipients.
The ESF continues to strengthen the local workforce, and drives long-term economic development in the Cayman Islands.
Growth and consolidation
Cayman’s captive insurance market has seen remarkable growth, with the number of captives rising from approximately 400 in the mid-1990s to 696 at Q3 2024.
This expansion has been accompanied by consolidation. “Mergers and acquisitions have reduced the number of independent managers,” Poole explained, citing examples such as the Artex acquisitions of Chandler Insurance Management and Horseshoe, along with SRS’s absorption of Dyna Insurance Management. Despite this, he emphasised the sector’s resilience and adaptability.
Cayman’s captive insurance market was built on healthcare captives, particularly during the hard medical malpractice market of the 1990s, when Cayman was forming up to 90 captives annually.
Cayman has remained a key player in collateralised reinsurance, licensing new entities annually.
The US Affordable Care Act of 2010 prompted mergers within the US healthcare sector, resulting in fewer but larger captives, and Poole highlighted their ongoing relevance. “These captives have become more sophisticated, continuing to play a vital role in risk management,” he said.
Cayman’s regulatory flexibility has been key to this success, particularly its recognition of non-employed physicians as part of a common risk management plan.
In the mid-1990s, Cayman began to explore the ILS market, with early catastrophe bonds issued by George Town Re. Cayman remains a key player in the cat bond and collateralised reinsurance markets, licensing new entities annually.
Group captives, catering to middle-market clients termed SMEs, have also thrived. “These captives started with workers’ compensation and general and auto liability coverage but have since expanded into areas such as cyber risk and employee benefits,” Poole said, crediting firms such as Artex, Marsh and Kensington Management for driving innovation in this segment.
Regulation
On the regulatory front, the introduction of segregated portfolio companies (SPCs) under the 1998 Companies Act was a game-changer. Today, Cayman has 145 SPCs, while ongoing efforts are in place to quantify the individual cells they encompass. In 2015, the portfolio insurance company (PIC) legislation was introduced to complement the SPC legislation that provides for incorporated cells, a product that was growing in popularity. By the end of 3Q 2024, there were 57 PICs established, reflecting the increasing demand for this innovative solution.
“It’s an opportunity to demonstrate our regulatory excellence.” Kevin Poole
The international insurance industry is a significant economic driver for Cayman. IMAC’s most recent economic impact study estimates an annual contribution of CI$230 million ($280 million) to the local economy, up from $136 million in 2019. “This includes spending on hotels, auditors, regulatory fees, and local service providers,” Poole said, emphasising the sector’s importance.
As the Cayman Captive Forum prepares to welcome attendees from around the globe, it reaffirms Cayman’s position as a trailblazer in the captive insurance landscape.
Looking ahead, Poole sees the Cayman Captive Forum as pivotal in shaping the future of the global captive industry. “The forum celebrates our achievements and sets the stage for continued innovation and excellence,” he concluded.
Kevin Poole is the general manager of the Insurance Managers Association of Cayman. He can be contacted at: kevin.poole@imac.ky
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