Cayman battles to attract insurance business
(CNS Business): The ripple effects of health care reform in the United States and increasing competition from more than 80 captive domiciles around the world has required diligence by the industry to continue to attract new business, according to the Insurance Managers Association Cayman. However, IMAC Chair Kieran O’Mahony said he was confident that Cayman could maintain its leading position in the captive market.
“The continuous flow of new formations in the current climate is evidence of the enduring strength of our industry and the domicile,” he said.
Twenty-two new licences were recorded in 2015, mirroring the previous year’s numbers. The total number of B, C and D licencees domiciled in the Cayman Islands as at 31 December 2015 was 708, pure captives representing 369 of these and a further 140 being segregated portfolio companies with 124 being group captives. Combined, these licencees wrote premiums of US$12.7 billion this past year, compared to US$12 billion in 2014, and held total assets of US$58 billion, compared to US$51.5 billion the year before.
“What is also of note is the sustained growth in premium written by Cayman licencees of almost 6% and the 12.5% increase in total assets held. Both of these rises speak to larger captives writing more lines of business, retaining more risk and most importantly, enhancing profitability. Further, group captives continued to expand during 2015 through organic growth as well as by new activations,” O’Mahony said.
The Cayman Islands remains the leading jurisdiction for healthcare and group captives, with 34% and 17% of market share, respectively. Cayman captives are increasingly being put to use for innovative lines of business and risk, such as insuring employee medical stop loss, medical groups, cyber/privacy breach and equipment maintenance, the industry experts said.
The full statistics are available on www.cimoney.com.ky
Category: Finance, Financial Services
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