Cayman seeing boom in reinsurance business
A growing number of reinsurance companies are setting up on Cayman, the Cayman Captive Forum heard.
In a panel session chaired by Graham Mackay, chief operating officer & actuary at Blue Ocean Solutions and also chair of the Cayman International Reinsurance Companies Association (CIRCA), the rise of reinsurance on Cayman was discussed.
The panel consisted of Fearghal O'Riordan, general manager & chief operations officer at North End Re, Jacob MacAdam, partner at Appleby, Regan Cairns, chief underwriting officer of Greenlight Re and Suzanne Sadlier, managing director of Artex Risk Solutions (Cayman).
Mackay explained that CIRCA was founded several years ago due to the rise of interest in reinsurance on Cayman and the authorities belief that an association was needed to represent the interests of reinsurers on Cayman. CIRCA works closely with IMAC, the panel stressed.
The panel pointed to the rise in the number of reinsurance applications in Cayman, and 2023 could see a record number of those applications, said MacAdam.
Looking at why reinsurers are coming to Cayman, the number if service providers on the island was cited as being attractive to many companies along with the domicile’s political stability, as well as its economic climate, which creates a favourable environment for international business & investment. CIRCA able to offer information to companies that want to come to Cayman
The panel underlined the infrastructure in place in Cayman and pointed to the saying that ‘if you build it, they will come’ – and reinsurers are coming to Cayman.
The panel also pointed to the business-friendly policies of the Caymanian Government, which the business community is familiar with and trust. Cayman’s regulators are also seen as being sensible and proportionate in terms of the rules & regulations it lays down.
Cayman also seen as being a place that is easily accessible to relocate to, possessing excellent facilities, good schools, proximity to US, etc.
However, the panel stressed that reinsurance companies that do come to Cayman must make sure that they are properly set up & collateralised, as requirements are regulated.