Dynamism and growth: Cayman still leads the pack
In the first of two articles Captive International analyses the results of our exclusive survey on the Cayman captive insurance market.
The Cayman Islands, one of the world’s leading hubs for captive insurance, remains dynamic and poised for growth, according to the findings of a survey by Captive International.
The survey highlights the importance of networking, knowledge-sharing, and adapting to evolving risks and regulatory landscapes.
One of the primary findings of the survey, in which respondents could choose multiple answers to some questions, is that face-to-face interactions are highly valued by professionals in the Cayman captive insurance sector. A majority—83 percent—of respondents attend conferences to connect with new people and seek potential clients, underscoring the important role of conferences in fostering new business relationships and opportunities.
”Sixty-seven percent of respondents attend to reaffirm relationships with existing clients.”
The industry’s reliance on trust and established relationships makes personal connections essential. Sixty-seven percent of respondents attend to reaffirm relationships with existing clients, ensuring that partnerships are nurtured and communication remains open.
Beyond relationship-building, professionals view conferences as essential learning opportunities: 84 percent of respondents attend to learn about emerging trends and deepen their understanding of the industry. One highlighted the value of staying informed on current and future developments. This learning aspect is further emphasised by the range of topics expected to dominate upcoming conferences, from market conditions to regulatory shifts, which collectively shape the captive insurance landscape.
Key topics
The survey sheds light on the core topics likely to dominate discussions at conferences, reflecting the current concerns and interests within the Cayman Islands captive insurance market. One of the most frequently mentioned subjects is “new risks and structures”, which 82 percent of respondents noted as a significant topic. As captives seek to adapt to a rapidly changing risk environment, exploring innovative structures that align with emerging risks, such as cyber threats and reputational damage, is crucial for the industry’s growth.
Another prominent discussion point is the impact of artificial intelligence (AI) and accelerated digital advancements. A majority, 61 percent, acknowledged the significance of AI and digital technologies in the sector. With AI’s potential to improve underwriting processes, claims management, and data analytics, it is no surprise that captive insurance professionals are keenly interested in understanding its implications for their operations. Digital transformation is no longer just an option but an imperative for captives looking to maintain a competitive edge.
Regulatory changes will be a focal point, with 61 percent of respondents citing them as a key discussion topic. Regulatory developments continue to reshape the captive insurance industry, and keeping abreast of these changes is essential for compliance and strategy. As one survey participant stated: “It’s vital for captives to understand reputational value” and ensure compliance in ways that enhance brand reputation.
Increased demand for captives
The survey results indicate an expected increase in demand for captives, with 61 percent of respondents highlighting this trend. This increase is probably driven by the escalating cost and unpredictability in the traditional insurance market, which was noted by 56 percent of survey participants as a primary talking point.
Market conditions in commercial insurance, particularly the tightening of capacity and rising rates, are pushing more companies to consider the captive model as a cost-effective alternative. Captive insurance allows companies to self-insure and manage their unique risk profiles, making it an appealing solution amid challenging commercial market conditions.
Despite this increased interest, the overall sentiment suggests modest growth rather than explosive expansion. Half the respondents expect captive formations in the Cayman Islands to increase moderately in the coming year, while 39 percent expect them to remain stable. This indicates a cautious optimism within the industry, reflecting the challenges and opportunities presented by today’s market environment.
Other topics
The survey revealed several niche but notable topics on attendees’ minds, including environmental, social, and corporate governance (ESG) issues, corporation tax, and social inflation. ESG, noted by 17 percent of respondents, remains a growing area of interest. As companies worldwide place a greater emphasis on sustainable practices, captives may need to incorporate ESG considerations into their frameworks. The potential impact of ESG on risk profiles, investment decisions, and reputation will likely become more prominent in future discussions.
Social inflation—the rising costs of insurance claims due to societal trends—was also mentioned as a significant concern. Respondents noted the importance of discussing strategies to manage this issue effectively. With jury awards and legal costs increasing, captives are exploring innovative ways to achieve better claim outcomes.
The survey highlights the Cayman Islands’ captive insurance market’s adaptability and resilience as it navigates a period of change and growth. In-person conferences are viewed as indispensable forums for networking, learning, and addressing complex issues, enabling captive professionals to 4stay competitive.
As attendees to the Cayman Captive Forum prepare to engage in discussions around new risks, digital advances, and regulatory shifts, the Cayman captive market appears well-positioned to continue evolving in response to emerging threats and opportunities.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
