1 January 1970Cayman analysis

Cayman: onwards and upwards

2012 has been nothing short of a stellar year for Cayman Islands’ captives so far, despite the difficulties faced by the industry brought about by a challenging market. Such welcome news underscores the high level of excellence service providers here seek for their clients and serves as an important backdrop to this year’s Cayman Captive Forum in November. Now in its 20th year, the Insurance Managers Association of Cayman’s (IMAC) first class conference has become a vital date in the diary for captive insurance practitioners and clients alike.

The statistics underscore the remarkable success this jurisdiction has achieved within the industry this year. In the first three quarters of the year 48 applications were submitted to the Cayman Islands Monetary Authority, with 31 licensed captives as of September 30, 2012. This means that the jurisdiction received more applications in the first three quarters of 2012 than during the whole of 2011 and all the years since 2006, a tremendous achievement. Such a growth trajectory puts the Cayman Islands firmly in the spotlight as a leading jurisdiction for the industry.

As of the end of September 2012, total premiums were reported at US$11.8 billion, compared to $9.5 billion at the same date a year ago, a rise of 24 percent. Total assets were at record highs of $88 billion compared to $58.2 billion a year ago—an increase of 51 percent. In particular, the Cayman Islands is the leading jurisdiction for healthcare captives, representing 45 percent of all such captives.

North America continues to be our most important source of business, with clients mainly comprising companies insuring risks in North America, with the Caribbean and Latin American region coming in second as the next most important geographical regions. IMAC’s Cayman Captive Forum provides the ideal opportunity for such clients to meet with their captive service providers, with several chances to network, both formally and informally, whether it’s dining together, at business meetings or over a round of golf. It also provides excellent opportunities to learn more about the industry, keep up to date with economic trends and find out about what the future holds for the captive insurance industry.

Whatever your reason for attending, we are confident you will enjoy true Caymanian hospitality during your stay and achieve your goals to ensure your business continues to prosper in the years ahead.

Richard Coles is the chairman of Cayman Finance. He can be contacted at: rhcoles@candw.ky