About the Cayman Islands
The Cayman Islands is the second largest domicile for captive insurance companies world-wide and holds the number one position for health care sector captives.
As at June 30, 2014, Cayman's 764 licensed captive insurance companies wrote premiums of US12.3 billion and held total assets of US$54.9 billion.
As at June 30, 2014, Cayman captive premiums by product line were split as follows; Medical Malpractice 34%, Workers Compensation 22%, Property 12%, General Liability 10%, Professional Liability 9% and Others including Accident & Health, Auto, Credit Life, Deferred Variable Annuities, Life, Marine & Aviation, Product Liability, and Surety Bonds 13%.
Cayman Islands Monetary Authority (CIMA)
CIMA's Mission: To enhance the economic wealth and reputation of the Cayman Islands by fostering a thriving and growing, competitive and internationally recognised financial services industry through appropriate, responsive and cost-effective and efficient supervision and a stable currency.
The Insurance Law (2010) gives CIMA the responsibility of regulating the insurance industry in the Cayman Islands. This includes licensing, on-going supervision and enforcement. The day-to-day regulatory oversight of the insurance sector falls to CIMA's Insurance Supervision Division.
Insurance Supervision: Ms. Morag Nicol
- CIMA governs in accordance with core principles established by the International Association of Insurance Supervisors ("IAIS")
- Regulatory supervision exercised in a prudent manner
- Focus on client access to the regulator
CIMA negotiates memoranda of understanding and undertakings (MOUs), which provide the framework for exchange of information and co-operation between CIMA and overseas regulatory authorities.
- The Insurance Amendment Bill (2013) was passed to provide for the registration of portfolio insurance companies or PICs within segregated portfolio companies. PICs are legal entities that can contract with each other and which can be wound up without affecting the controlling SPC.
- March 2012: CIMA signs MOU with the US SEC. Defines scope of consultation, co-operation and information exchange between parties.
- January 2013: Moody's releases summary credit opinion of the Cayman Islands: Stable outlook - Long Term Issuer and Senior Unsecured (foreign currency): Aa3
- Cayman looks with interest at Solvency II but feels that as the final outcome is unknown vis a vis proportionality for the captive industry and further as Solvency II is a European Union initiative (not a world standard), a watching brief will be maintained. Presently Cayman has no plans to seek Solvency II equivalency
- Cayman is viewed favorably by the global reinsurance markets
- Cayman is a pioneering domicile in segregated portfolio legislation
- Cayman has been to the fore-front of Anti-Money Laundering legislation
- Political stability - Cayman is a British Overseas Dependent Territory with external powers vested in the Governor
- The Cayman regulator operates independent from the Cayman Islands government
- 19 bilateral agreements are in effect with authorities in Argentina, Bermuda, Brazil (2), Canada, Dubai, Isle of Man, Jamaica, Jersey, Malta, Mexico, Panama, Turks & Caicos, UK, USA (5)
- 4 multilateral agreements exist: MMOU with the International Association of Insurance Supervisors; Agreement with US Banking Regulators; MMOU with International Organisation of Securities Commissions & MMOU with 8 Caribbean regulators.