Cayman Calling – redomiciling your insurer to the Cayman Islands
Moving a captive can be simple – as long as all the hard work is done thoroughly and early, a panel stressed at the Cayman Captive Conference.
Redomiciling a captive to the Cayman Islands can be quite easy to management, but captive owners must make sure that they stick to the required regulatory procedures, according to the panel.
Phillippa Gilkes of Conyers, Mike Scott of Aon and Robert Moses Vargas of captive insurer New England Pediatrics Indemnity discussed the process of moving a captive and redomiciling it in Cayman.
The panel agreed that redomiciling can be relatively simple at times, after the decision to move is made, but that regulatory checks must be carried out though.
Asking the question of why move to Cayman, the panel pointed to the relative ease and low cost of entity maintenance, the fact that CIMA is ‘renowned’ as a flexible & commercial regulator, a developed framework of laws & regulations that makes conducting business in Cayman seamless & efficient.
It was also stressed that service providers were present in force on Cayman, along with a stable government and strong economic environment.
Other owner/parent considerations for a move to Cayman include insurance manager and other service provider selection, understanding the costs associated with redomicile, financial projections, ultimate cost savings, value in moving to a leading insurance jurisdiction, ease of meeting at Cayman and attendance at the Cayman Captive Forum.
Accounting & operational considerations including the transfer of books & records of the captive, bank and investment accounts, management reporting & audit, relationships with other service providers and tax considerations all have to be taken into account
The panel stressed that before moving a captive an owner should never assume jurisdictional equivalence. Cooperation between local counsel & satisfaction of requirements in both outgoing and incoming jurisdictions was strongly urged.
Scott concluded by saying that if everything goes smoothly it can generally be a 3-4 month process from time that decision is made to redomicile to moving.