Insurance

Many of the attributes that naturally lend themselves to the development of Cayman's core financial industries, such as banking and mutual funds, have also contributed to the growth and success of the captive insurance industry. Industry practitioners remain competitive in the services they offer and are intimately familiar with trends affecting the global businesses that rely on Cayman's financial services.

For this reason, among many others, Cayman is firmly established as the domicile of choice for companies seeking a formal self-insurance programme that provides actuarial risk coverage and maximum profit retention.

This position was further strengthened by the introduction of the Companies (Amendment) (Segregated Portfolio Companies) (SPC) Law, 1998. The SPC law caters to small-to-medium-sized insurance companies who desire to establish a captive but are unable by themselves to meet the specified capital requirements. Under this structure, there is a legal segregation of the assets and liabilities of individual portfolios - or cells - from each other and from the general assets of the 'core' company, so that an insolvent portfolio cannot access the individual assets of any other portfolio. The ability of an insolvent portfolio to access the general assets of the core company facilitates beneficial tax treatment for an insured.

Already, there are well almost 700 captive insurance companies registered in Cayman. The predominant portion of these continues to be healthcare-related captives. However, Cayman has in recent years become the choice of companies across all commercial and industrial sectors.

The Cayman Islands is an active member of the Offshore Group of Insurance Supervisors which is affiliated with the International Association of Insurance Supervisors (IAIS).

For more information about the insurance industry in the Cayman Islands view the International Insurance brochure.

Click here for a listing of Insurance Companies.