Hon. Tara Rivers, Minister for Financial Services and Home Affairs
The Cayman Captive Forum celebrates its silver anniversary in an environment of stability and growth, writes Hon. Tara Rivers, Minister for Financial Services and Home Affairs.
The celebration of any silver anniversary is a momentous occasion. For you and others in the captive insurance industry who are reading this publication, this is especially evident during the 25th year of the world’s largest gathering of captive insurance professionals.
As Cayman Captive Forum marks this milestone, it has the distinct honour of also being the largest conference held in the Cayman Islands—a title it has held for quite some time. The Insurance Managers Association of Cayman (IMAC) should feel extremely proud for consistently staging an event that continues to grow stronger every year, which reflects the strength of our captives sector.
According to our financial services regulator, the Cayman Islands Monetary Authority (CIMA), we already have seen 24 licences issued for captive insurance companies as of September 30, 2017. This means that for the second consecutive year, we have eclipsed our 2015 total of 22 new licences. With the busy period for registrations still to come, the captives sector is set for further growth.
The types of new licences coming through should also give further confidence in the way forward. I am pleased to see significant uptake with portfolio insurance companies (PICs), after the government introduced PIC legislation in 2015 to give you greater flexibility.
Nearly 10 percent of this year’s newest entries are PICs. Available for use by the international insurance market, this new product ranks with offerings from other jurisdictions, including the Delaware Series Limited Liability Company.
It should not be overlooked that PICs are a result of Cayman’s collective approach to financial services. CIMA and industry both provided input to government from their respective positions, which resulted in legislation that is well developed and most importantly, is effective.
I am also happy to report that the majority of our 2017 new licences, about 75 percent, are in the class B(i) and B(iii) insurer categories. The use of these classes speaks to the ongoing and successful partnership between government and CIMA that maintains Cayman’s competitiveness, by ensuring our requirements and insurance fee regime are in line with market rates.
On another positive point, as our local regulator, CIMA prides itself on providing effective oversight that meets global standards. With this as its objective, and in recognition of the growth of captives, CIMA has received additional funding from government that it will use for additional resources to monitor the sector.
By providing these captives-specific resources, Cayman already is a very attractive place for growth. But government takes a holistic view of our jurisdiction’s stability because, to paraphrase a well-known maxim, the sum enhances the value of the parts. For example, many persons in financial services sectors want and appreciate good infrastructure, and Cayman certainly has that. We know it builds the confidence that captives, and other financial services sectors, must have before they choose to have physical presence here.
To that end, Cayman is advancing several capital projects, such as the redevelopment of our airport and the construction of a modern cruise berthing facility. Our Premier, the Hon. Alden McLaughlin, speaks more about these projects in his foreword, but I’m delighted to say the obvious: these capital projects certainly boost our business environment. They reinforce that our jurisdiction provides an exceptional platform for success for all types of business, including captives.
During the Cayman Captive Forum, we’ll hear about the global developments in legislation, regulation and the market that affect captives today, and into tomorrow. These developments are factored into Cayman’s advances in this sector, and they are the reason for Cayman’s collaborative approach. Government firmly believes that our model allows a futuristic view of captives that is favourable to mutual success, and we welcome input from you and other stakeholders as we collaboratively and effectively work to achieve our objectives.
Tara Rivers, Captives, Financial Services, Cayman