The Cayman Islands has seen 33 new captive licensees in the first three quarters of 2016, well ahead of the 22 and 24 new captives licensed in the full years 2015 and 2014, respectively.
In the third quarter ending in September, 10 new captives were formed.
The total number of licensees domiciled in Cayman was 711 as of Sept. 30, the same as at the end of the third quarter last year. This included 361 pure captives and 146 segregated portfolio companies.
Total premiums written for the sector were US$13.9 billion with total assets held of US$59.0 billion, the Insurance Managers Association of Cayman reported.
IMAC said increasing competition from more than 80 captive domiciles worldwide as well as the enduring soft market has required innovation, persistence and ingenuity on behalf of the industry to continue to attract new captives.
IMAC Chairman Kieran O’Mahony is nevertheless confident about Cayman’s leading position in the captive market.
“The acceleration in the number of new captive formations over recent years is evidence of the continued strength of our industry and the attractiveness of Cayman as the captive domicile of choice,” he said.
“What is even more remarkable is the fact that our segregated portfolio companies and our group captives, for which we are also the leading domicile, are seeing steady organic growth, as well as new incorporations, and both of these models tend to suppress new captive formation numbers,” he added.
Cayman is the leading jurisdiction for medical professional liability captives, with 34 percent of the captives in this category. Workers’ compensation is the second largest, with approximately 21 percent of captives assuming this risk. Cayman captives are increasingly being used for more innovative uses, such as employee medical stop loss, equipment maintenance, and unrelated party risks, IMAC noted.