A Leader in Captive Insurance
Many of the attributes that naturally lend themselves to the development of Cayman’s banking and mutual funds industries have also contributed to the growth and success of the captive insurance industry. Industry practitioners offer competitive professional services and are intimately familiar with trends affecting global businesses.
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. There are more than 700 captive insurance companies licensed in Cayman under the Insurance Law (2004 Revision). 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.
A popular product offering is the Segregated Portfolio Company (SPC) structure, which caters to small-to-medium-sized insurance companies looking to establish a captive, but who are unable to meet the specified capital requirements individually. Under an SPC, 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 the insured parties.
Last Updated: 2005-06-07