[Watch and Read] The secret to Cayman’s winning story
An online panel of industry experts told Captive International why Cayman continues to lead the captive insurance industry.
The Cayman Islands has long been recognised as a global leader in the captive insurance sector. With increasing competition from other domiciles, stakeholders across the industry consistently highlight the unique differentiators that position the Cayman Islands as a dominant player.
In a Captive International online panel Kara Knowles, executive vice president at Gallagher Bassett Specialty; Bill Murphy (pictured left), executive vice president, alternative markets at Arch Insurance; Suzanne Sadlier (pictured right), executive vice president–captive management, North America at Artex Risk Solutions; and Clayton Price, managing director and general manager at Beecher Carlson Cayman, spoke about what makes the Cayman Islands exceptional, the strategies for success in this market, and the innovations necessary to ensure future growth.
One of the Cayman Islands’ greatest assets is its longevity and reputation in the captive insurance market. Price emphasised the jurisdiction’s consistent growth and resilience in the face of evolving competition. Reflecting on his career, he noted the early dominance of a few US states in the captive insurance space, contrasting that with today’s widespread legislative adoption. Yet, Cayman has maintained its lead.
“Over the course of time, Cayman has developed from strength to strength, showing that it’s a leader,” Price stated. He pointed to the robust infrastructure, experienced personnel, and well-established regulatory framework that give Cayman an enduring edge.
This sentiment was echoed by Knowles, who highlighted the long-term partnerships companies seek when engaging in the Cayman market. “The longevity of Cayman in the captive space is important. It has continued to evolve and grow. Companies are looking for a long-term partner and relationship, and Cayman provides just that,” she observed.
Watch the full panel discussion below.
Expertise across the jurisdiction
Another defining feature of Cayman’s success is its deeply embedded expertise. From regulators to service providers, all players in Cayman bring decades of specialised knowledge to the table. Sadlier elaborated on this, stating: “All the audit firms in Cayman have captives on their books. None of them would encounter it for the first time, and this experience is prevalent across the jurisdiction.”
She added that this deep expertise extends to specific sectors, such as healthcare, enabling auditors, managers, and regulators to handle complex, nuanced scenarios with confidence and clarity.
The depth of regulatory expertise is another key differentiator. Sadlier praised the Cayman Islands Monetary Authority (CIMA) for its comprehensive understanding of the market. “CIMA supervises hundreds of captives and has done so for decades. Their wealth of experience ensures a smooth regulatory process.”
Murphy concurred, highlighting the breadth of support available in Cayman. “Cayman has tremendous bench strength,” he said. “It’s not a single state with a couple of regulators; there’s a whole department dedicated to this space. The depth of service providers and regulatory commitment ensure stability and consistency.”
“The depth of service providers and regulatory commitment ensure stability and consistency.” Bill Murphy
Collaboration and education
The Cayman Islands’ success is built on its commitment to collaboration within the industry. According to Knowles, the active engagement of industry players and resources in Cayman is evident in the educational opportunities and conferences it offers, such as the annual Cayman Captive Forum. This forum serves as a platform for knowledge-sharing, fostering innovation, and building relationships among stakeholders.
Another significant contributor to Cayman’s collaborative culture is the Insurance Managers Association of Cayman (IMAC). Sadlier highlighted its role, noting: “IMAC has been in existence for over 30 years, with a strong governance and committee structure that supports the industry.” This institutional support is a key strength that ensures Cayman remains a preferred domicile.
For companies looking to succeed in the Cayman captives market, selecting the right service providers is essential. Murphy noted the importance of partnering with experienced professionals. “Cayman makes it easy in that regard,” he said. “It’s important to select the right captive manager, audit firms, and other service providers to align with your particular business needs.”
Building strong relationships with regulators is equally important. Price emphasised the need for knowledgeable personnel to streamline processes with CIMA, stating: “Making CIMA’s job more efficient makes everyone more efficient, resulting in timely approvals that keep clients satisfied.”
Integrating the captive into the parent organisation’s broader risk management strategy is also vital. Sadlier noted: “The captive must be governed as a separate entity but intrinsically linked to the wider risk management programme. This alignment ensures its success as part of the overall strategy.”
“The captive must be governed as a separate entity but intrinsically linked to the wider risk management programme.” Suzanne Sadlier
Innovations to drive future growth
Looking to the future, the panel agreed that innovation will be key to sustaining Cayman’s leadership in the captive insurance sector. Technology and artificial intelligence (AI) are at the forefront of this conversation.
“AI and technology are on everyone’s mind,” Knowles observed. “The challenge is to implement these innovations thoughtfully, increasing efficiencies while reducing administrative burdens.”
Sadlier suggested the concept of dedicated regulatory sandboxes in Cayman to test new technologies and solutions. She highlighted the role of insurtech-supported captives in the jurisdiction, which can address emerging risks such as cyber threats and big data challenges. “Having technology focus groups and evolving regulatory frameworks to support these developments is crucial,” she said.
Price pointed to innovations in capital recognition, such as exploring the use of blockchain and ESG credits. “It will be interesting to see how these areas evolve and how regulators address emerging opportunities,” he noted.
Murphy added that streamlining processes such as “know your client” requirements could enhance efficiency in handling the increasing demand for captives, and he highlighted the need for creative solutions to address gaps in coverage, particularly in areas such as excess umbrella policies.
Regulatory evolution and industry leadership
Cayman’s regulatory innovation continues to position it as a forward-thinking jurisdiction. Sadlier pointed to CIMA’s establishment of a Virtual Asset Services Division as a prime example. “CIMA has taken a deliberate, proactive approach to creating a regulatory framework for virtual asset service providers. This positions Cayman at the forefront of addressing global regulatory challenges,” she said.
Price highlighted the evolution of Cayman’s regulatory classifications, such as the bifurcation of class B licences into three categories. This innovation allows Cayman to cater for a broader range of business models, including incubators and reinsurers, fostering growth and adaptability within the sector.
The Cayman Islands has cemented its position as a leading captive insurance domicile through its longevity, embedded expertise, collaborative culture, and forward-thinking regulatory framework, the panel concluded.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
