Captive insurance generates $100m for Cayman's economy
Cayman’s captive insurance industry has generated a total of $100 million for the island’s economy in 2016, with results from an economic impact survey having been recently released by the Insurance Managers Association of Cayman (IMAC).
“Over the summer our research and development committee conducted research on precisely how the captive insurance industry benefits the Cayman Islands,” said IMAC chair, Erin Brosnihan. “We are now very pleased to share these positive results with the government and local community.”
Brosnihan praised the industry’s success, commenting on what this means for Cayman. “When our industry thrives, Cayman thrives – and when it comes to captive insurance, we are on top. We are the second largest jurisdiction in the world and on the heels of Bermuda. It is only natural that these accomplishments are shared with Cayman,” she said.
The Q3 results from the Cayman Islands Monetary Authority (CIMA) showed the insurance industry for Cayman have total premiums written at nearly $12.4 billion, with assets under management at over $61 billion. “We’re delighted with 2017 results so far, and are projecting total premiums to rise to around $16 billion by year end,” said Brosnihan.
IMAC’s economic survey reported that the captive industry generated $72 million in revenue for Cayman’s service providers, and currently provides employment for approximately 300 staff of which nearly half are Caymanian.
The Cayman Islands government and its regulatory bodies saw a healthy boost from the industry, with US $11 million in fees having been paid to the Cayman Islands Monetary Authority (CIMA) and Registrar of Companies.
“We also mustn’t forget that captive insurance also boosts Cayman’s tourism product,” she added. “Captive business conducted in Cayman generated US $16 million for the hospitality industry.”
Each November Cayman hosts the world’s largest captive insurance conference, with over 1,400 delegates.
“The Cayman Captive Forum largely assists with the funding of our Scholarship Foundation,” explained Brosnihan. “We have generated $3.4 million since inception of the Foundation from funds raised via donations and since 2005, surpluses generated from the Cayman Captive Forum and, and have so far assisted 42 young Caymanians achieve higher education over the years.”
IMAC also provides philanthropic assistance to the Cayman HospiceCare, Cayman Islands Crisis Center and the Cayman Islands Cancer Society.
“By nature we are business-driven but we also believe in giving back to the community by way of gratitude,” said Brosnihan. “These survey results speak volumes of the significant contributions this industry has provided, and will continue to provide to the people of Cayman for years to come.”