6 December 2012Accounting & tax analysis

New fees for Cayman captives outlined

During a speech at the 2012 Cayman Captive Forum, Minister for Health, Environment, Youth, Sports and Culture Mark Scotland announced the passing of a new regulations under the Cayman Islands Insurance law (2010), including the fee schedule for captives.

The registration fees for captive insurance companies (Class B) will be sub-categorised according to the amount of unrelated party risk written. The classifications are: Bi (up to 5 percent of unrelated business - $10,366); Bii (greater than 5 percent but less than 50 percent unrelated business - $11,585) and Biii (greater than 50 percent unrelated business written - $12,805). The registration fees for insurance-linked securities and catastrophe bond insurers (Class C) are to be $6,098).

Scotland promised that the remaining regulations were in the process of being confirmed and would be released in the coming weeks. The Cayman Islands Insurance Law was enacted to satisfy market demand for greater differentiation within the captive field and following recommendations from the International Monetary Fund (IMF). Gordon Rowell, head of insurance supervision of the Cayman Islands Monetary Authority (CIMA) said in a presentation that the law “underscores Cayman’s commitment to a platform for growth in this important industry.”