The Cayman Islands captive insurance industry is going from strength to strength, according to industry insiders.
The industry hit an all-time high of US$13.5 billion in total premiums and US$82.8 billion in total assets as at 30 June 2013.
These figures are up 52 per cent and 5 per cent respectively over the same period in 2012, which had been considered a banner year for growth in the industry.
The Cayman Islands Monetary Authority reported that it oversees 750 class B, C and D companies as at 30 June 2013, with 412 of those pure captives and 134 as segregated portfolio companies.
Figures from CIMA show there were 543 class B, C and D companies in the Cayman Islands in 2001. The number has risen steadily over the past decade and reached a peak of 780 in 2009.
There are slightly fewer now, the press release put the figure at 750. But those companies are doing more business than ever.
Rob Leadbetter, chairman of the Insurance Managers Association of Cayman said, “2012 was considered a year of phenomenal growth for Cayman captives with 20 new licences granted in the first two quarters (53 for the whole year), and over the same period this year, we have attracted 24 new captives.
“This is very encouraging and demonstrates the fact that Cayman continues to attract solid business because of its high level of transparency and regard for international regulatory initiatives and its history of integrity.”
The majority of these captives are from North America-based companies, with 34 per cent of them relating to medical malpractice and 21 per cent covering workers’ compensation.
The Cayman Islands recently signed a tax information exchange agreement with Brazil, which the association believes will provide a gateway to new markets and the opportunity to the continued explosive growth in that region.
Representatives from Cayman Finance welcomed the statistics last week.
“Given 2012 was widely considered very successful for the captive insurance industry, we are particularly pleased to see the 2013 year-to-date growth rates exceeding the 2012 numbers,” said Gonzalo Jalles, CEO of Cayman Finance.
Mr. Jalles said the success of the captive industry demonstrated Cayman’s unique strength as an offshore jurisdiction, which holds leadership positions across several industry areas simultaneously.
“It goes to show the Cayman Islands continues to be a strong financial services centre with both breadth and depth, as our captive insurance industry remains one of the global leaders. Cayman Finance commends the industry professionals and government stakeholders behind this success as it establishes very clearly our commitment to first-class client service and balanced regulation is working,” he added.