Posted on 02 Aug 2013 by Neilson
The Cayman Islands captive insurance industry hit an all-time high of US$13.5 billion in total premiums and US$82.8 billion in total assets as at 30 June 2013. These figures are up 52 percent and five percent respectively over the same period in 2012, which had been considered a banner year for growth in the industry.
The Cayman Islands Monetary Authority (CIMA) reported that they oversee 750 class B, C and D companies as at 30 June 2013, with 412 of those pure captives and 134 as segregated portfolio companies (SPCs).
Rob Leadbetter, chairman of the Insurance Managers Association of Cayman reviewed the statistics: 2012 was considered a year of phenomenal growth for Cayman captives with 20 new licenses granted in the first two quarters (53 for the whole year), and over the same period this year, we have attracted 24 new captives. This is very encouraging and demonstrates the fact that Cayman continues to attract solid business because of its high level of transparency and regard for international regulatory initiatives and its history of integrity.
The majority of these captives are from North American-based companies, with 34 per cent of them relating to medical malpractice and 21 per cent covering workers compensation. The Cayman Islands recently signed a tax information exchange agreement with Brazil, providing a gateway to new markets and the opportunity to the continued explosive growth in that region.
Insurance Managers Association of Cayman (IMAC) is a non-profit organisation run by the insurance managers of the Cayman Islands. In operation since 1981, IMACs aim is to act as both regulatory liaison with the Cayman Islands Government and to promote the Cayman Islands as a domicile of choice for captive insurance companies.
IMAC hosts the world's largest captive insurance conference, attracting nearly 1,300 captive managers, service providers and directors annually.