Cayman’s captive insurance industry generated US$100 million for the islands’ economy in 2016, according to an economic impact survey by the Insurance Managers Association of Cayman.
“Over the summer our research and development committee conducted research on precisely how the captive insurance industry benefits the Cayman Islands,” said IMAC Chair Erin Brosnihan.
“We are now very pleased to share these positive results with the government and local community.”
IMAC’s economic survey reported that the captive industry generated US$72 million in revenue for Cayman’s service providers, and currently provides employment for approximately 300 staff, of which nearly half are Caymanian.
The Cayman Islands government and its regulatory bodies also saw a significant contribution from the industry, with US$11 million in fees paid to the Cayman Islands Monetary Authority and Registrar of Companies.
The third quarter results from the Cayman Islands Monetary Authority show Cayman’s insurance sector accounted for $12.4 billion in premiums written and $61 billion in assets under management.
“We’re delighted with 2017 results so far, and are projecting total premiums to rise to around $16 billion by year end,” said Ms. Brosnihan.
The outlook for captive formations is equally optimistic. Adrian Lynch, marketing committee chair of the Insurance Managers Association of Cayman, predicts captive formations similar to this year, if not greater in 2018.
“We are beginning to see a hardening in reinsurance rates, which means clients will revisit their captives in terms of their deductible spend and the attachment of their reinsurance. A hard market in 2018 will mean a greater number of formations for Cayman,” he said.
In addition to industry and government revenue, the insurance industry also contributes to Cayman’s tourism sector.
“Captive business conducted in Cayman generated US$16 million for the hospitality industry,” Ms. Brosnihan said.
The Cayman Captive Forum, the world’s largest captive insurance conference, hosted by IMAC, is one of the factors as it attracts more than 1,400 delegates each November.
The Cayman Captive Forum also assists with the funding of IMAC’s Scholarship Foundation.
Since inception the Foundation generated US$3.4 million from donations and surpluses from the Cayman Captive Forum.
So far, the Foundation has helped 42 young Caymanians achieve higher education.
In addition, IMAC provides philanthropic assistance to the Cayman HospiceCare, the Cayman Islands Crisis Center and the Cayman Islands Cancer Society.