About the Cayman Islands Financial Sector

The Cayman Islands is the world’s fifth largest financial centre. To be successful in this competitive industry requires political and economic stability, a responsive legal system, a stable banking environment, a sound regulatory regime, tax neutrality, and the presence of highly sophisticated service providers. All these factors, as well as Cayman’s continued status as an overseas territory of the United Kingdom and its cooperation with the United States and the European Union, provide the ground work to a successful Financial Industry.

The presences of the Cayman Islands Monetary Authority (“CIMA”), through their insurance division, gives the Cayman captive domicile a clear and carefully enforced regulatory environment. The sound regulatory regime, government support and support from the Insurance Managers Association of Cayman (IMAC) facilitates the success of the Cayman Islands as a leading captive domicile.

CIMA, is one of the 184 members of the International Monetary Fund (IMF) organization. A recent report released by the IMF assessing supervision and regulation in the Cayman Islands' banking, insurance and securities industries, as well as its anti-money laundering regime, recognized the jurisdiction's comprehensive regulatory and compliance frameworks. "An extensive program of legislative, rule and guideline development has introduced an increasingly effective system of regulation, both formalising earlier practices and introducing enhanced procedures," noted IMF assessors. The report further stated that "the supervisory system benefits from a well-developed banking infrastructure with an internationally experienced and qualified workforce as well as experienced lawyers, accountants and auditors," adding that, "the overall compliance culture within Cayman is very strong, including the compliance culture related to AML (anti-money laundering) obligations...".

The international financial base, exceptional regulatory regime and the untiring commitment of all service providers within the juristiction, bodes well for the continued success, development and high standards for the Cayman Islands as a domicile of choice.

 

CAYMAN ISLANDS - DOMICILE CAPTIVE INFORMATION

Cayman Islands Captive Statistics (December 31, 2011)

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 December 31, 2011 Cayman’s 739 licensed captive insurance companies wrote premiums of US$11.76B, generated net income of US$2.45B, retained Assets of US$68.5B and maintained net worth of US$13.1B.

Captive premium by product line was split as follows; Medical Malpractice 36%, 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 Recall, and Surety Bonds 11%.

(Source: CIMA)

 

Applicable Acts

The Insurance Law (2010) gives the Cayman Islands Monetary Authority the responsibility of regulating the insurance industry in the Cayman Islands. The Regulations associated with the Law are expected to become effective in the 2nd quarter of 2012 once they have been approved.

Companies Law (2010 Revision)
The Insurance (Forms) Regulations (2003)
Monetary Authority Law (2010 Revision)

 

Supervisory Jurisdiction

Cayman Islands Monetary Authority (CIMA)
http://www.cimoney.com.ky

• CIMA governs in accordance with core principles established by the International Association of Insurance Supervisors (“IAIS”)
• Regulatory flexibility exercised in a prudent manner
• Focus on client access to the regulator

 

Head of Insurance Supervision:
Mr. Gordon Rowell
Cayman Islands Monetary Authority
80e Shedden Road
P.O. Box 10052
Grand Cayman  KY1 - 1001
Cayman Islands

 

Bilateral Tax Information Exchange Agreements

Cayman has signed bilateral tax information exchange agreements with Argentina, Aruba, Australia, Canada, China, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Guernsey, Iceland, Ireland, India, Japan, Mexico, The Netherlands, Netherlands Antilles, New Zealand, Norway, Portugal, South Africa, Sweden, USA, UK.

For further information please visit:

www.caymanfinance.gov.ky