George Town, Grand Cayman, 11 December 2012
Speaking at the 2012 Insurance Managers Association Cayman (IMAC) annual general meeting, Head of Insurance Supervision at the Cayman Islands Monetary Authority (CIMA), Gordon Rowell underscored the reasons why the Cayman Islands’ insurance industry has been successful, why it remains healthy and its outlook for the future.
Mr. Rowell noted that although the global economic recovery was not making great strides, 2012 for the Cayman insurance industry “has been the busiest year for new business in recent memory”. He provided statistics that revealed a 57 percent increase in license applications over the same period in 2011, and illustrated that existing licensees had grown assets considerably, having surpassed the $88 billion threshold.
Mr. Rowell said his forecast for the future of the Cayman insurance industry is bullish for several reasons, but in no small part because of excellent personal attention provided by Cayman’s service providers and the regulator; the implementation of the new Cayman Islands Insurance Law, which is “designed to be responsive and to allow business to flourish”; and the regulatory framework of the Cayman Islands, which “addresses entities based on the nature, scale and scope of the risk”. He contrasted this with what is happening in other jurisdictions, where “over-regulation, or poorly thought-out regulation creates additional costs and can kill the production efficiencies required to spark the necessary growth”.
Mr. Rowell invited those asset managers looking to less conservative investment strategies with a view to gaining better returns in an ongoing low interest rate environment, to discuss their plans with the Cayman Islands Monetary Authority as the regulator was open to these strategies, as long as proper fail-safes were in place.
At the AGM luncheon, outgoing IMAC Chairman Clayton Price welcomed Robert Leadbetter, Vice President of USA Risk Group (Cayman) Limited as the 2013 – 2015 Chairman and Kieran O’Mahony, Deputy Managing Director Aon Insurance Managers (Cayman) Ltd as Vice Chairman.
The Insurance Managers Association of Cayman (IMAC) is a non-profit organisation run by the insurance managers of the Cayman Islands. In operation since 1981, IMAC’s 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.