IMAC Event Captive Benefits
Captive insurance companies have been formed in Cayman for decades and as the international insurance sector has developed, with offshore operations of reinsurance and ILS issuers growing in significance, the development of the Cayman Islands financial infrastructure has been a supportive factor to institutions and participants in these markets.
Captive Formation Advantages
Captive insurance offers a source of insurance for the uninsurable. It can provide insurance coverage which is either not available in the commercial market or is prohibitively expensive.
- Lower costs for administration, claims settlement and loss control. Absence of state and federal taxes
- Risk management benefits- By demonstrating a better loss history than the industry average, lower premiums can be achieved
- Earn investment income on premium payments
- Conduct open market insurance operations for profit
- Access to reinsurance market
- Tax minimisation or deferral through properly structured and adequately capitalised captive insurance arrangements
Advantages of Cayman
- Sensible and appropriate, commercially focused regulation
- Relatively low licensing costs
- Collaborative local industry partners
- Tax neutral framework – No tax on corporate profits
- Deep pool of industry talent and support services
- Robust AML legislation
- Aligned with North America’s National Association of Insurance Commissioners standards
Reinsurance in Cayman
The Cayman Islands has shown over the years that it understands the needs of the reinsurance industry and provides the right conditions for business to thrive, while updates to the Insurance Law in 2010 provided special incentives to attract reinsurance business.
Legislation
As a British Overseas Territory, the Cayman Islands is both strong and secure and its highly regarded common law legal framework is the foundation for much of the growth of the financial services industry.
First Class Legal System
It has a sophisticated court system and highly developed corporate legislation with respect for privacy and the Rule of Law, with ultimate appeal going all the way to the Privy Council in London.
Its familiar corporate structures provide the certainty and security required by investors, allowing lenders to enforce security to protect creditors and investors.
Explore Cayman’s Legal System
Cayman’s highly developed judicial and court system is a model for the world and the hallmark of a first-class international financial system. Its specialised Financial Services Division features judges with great experience in financial matters and much of the world’s most complex and high value litigation is settled here.
You can explore the Cayman Islands legal system in detail here.
Constant Evolution and Refinement
Financial services legislation is constantly evolving, with input from industry associations like IMAC, to ensure that it always meets the changing needs of clients in a dynamic competitive marketplace.
Operating in Cayman
Key Resources
