(CNS Business): Regulations currently being finalised relating to the Insurance Law 2010, which was passed early last year, will likely include immigration incentives for the reinsurance industry, such as the introduction of ten year work permits for senior executives within the industry, reduced work permit fees and the introduction of a streamlined process that will speed up work permit applications for the sector, Premier and Minister of Finance McKeeva Bush announced at the opening of this year’s Cayman Captive Forum.  He said the Cayman Islands needed to change its immigration regime and to enact legislation to allow business to flourish. (Photo by Dennie Warren Jr)

“We talk about regulations but I believe that there is another part to this and that is how a company has to operate here,” Bush said to the 1,200 strong delegates in attendance at The Ritz-Carlton. “Some people believe that we don’t need this. Government, as a partner, has a part to play to provide a framework so that companies can operate in an assured manner so they know they can get the staff they need.”

This was a “ticklish” aspect of being a politician, particularly as campaigning for the next election had already begun, he said.

“Immigration controls have to play their part and make the road possible so that we have good staff in our jurisdiction,” the premier said. “Nobody wants to have their investment in a country where they aren’t sure who is managing what and they can’t get the staff they need. For a small island it’s tough, but I state publicly that we need to change our immigration regime. We need to enact legislation to allow business to flourish.”

Bush said that the private sector sub-committees made up of insurance professionals tasked with reviewing the regulations have requested one final round of consultation, after which the regulations will be presented to Cabinet with the intention that they will be passed at the end of this year or early next year. Once the regulations have been passed, the changes to the Insurance Law will then take effect.

The legal model for the new regulations will be based upon similar legislation in operation in other jurisdictions, which will vary only in technical form rather than substance, he said.

The Insurance Law 2010 was hailed as an important step forward for the industry when it was passed last year, with new provisions including two new categories of insurer licences – class C (Special Purpose Vehicles) and Class D (Reinsurers) as well as whistle-blowing provisions, domestic policyholder protections and increased penalties and powers by the regulator.

Liz Frederick, of Kane (Cayman) Ltd said at the conference that the Cayman Islands was at the forefront of growth within the industry. 

Bush noted that sound regulation was an important part of the success of Cayman’s financial services industry.“Some people scoff at regulation but we understand that in this kind of environment that it’s something that our country must present at all times,” he said. “Many times when I’ve travelled around the globe to promote these islands I’m asked what is the success and how were we doing in this global environment. I say one of the reasons we are so stable is that we have good regulation and good professionals. Our regulatory regime is what is behind our stable environment.”