This week the Cayman Islands Legislative Assembly passed an amendment to allow the registration of portfolio insurance companies (PICs) within segregated portfolio company insurers (SPCs). The bill also creates a new class of insurer known as Class B(iv).
According to law firm Soloman Harris, the legislation—which is an amendment of the Insurance Law and crafted as a regulatory modification— provides a model for incorporated cells which is specific to the insurance sector and would not extend to other sectors of Cayman’s financial services industry. In the Cayman model, the cell incorporation is achieved by a separate company being established by the SPC underlying the relevant cell rather than the cell itself taking on incorporated status.
Paul Scrivener, partner and head of the insurance group at Solomon Harris, chaired the sub-committee of the Financial Services Legislative Committee which assisted the Cayman government in the development of the legislation. He commented: “this legislation has been widely anticipated and is the fruit of a tremendous collaborative effort between the Cayman Islands government, the Insurance Managers Association of Cayman and the Financial Services Legislative Committee over a two year period. It is, arguably, the most significant legal development for Cayman’s insurance sector since the introduction of segregated portfolio legislation in 1998.”
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Novel structures, Cayman Islands, legislation