Archive for May, 2012

Cayman Touts Insurance Industry Offering in North America

Thursday, May 24th, 2012

A delegation from the Cayman Islands insurance industry attended the 50th Annual Risk and Insurance Management Society conference with a view to promote the jurisdiction’ position as a growing domicile for captive insurance companies. The event was held in April.

The Risk and Insurance Management Society (RIMS) conference and exhibition is the largest gathering of risk professionals in North America. In 2012, the event saw more than 10 000 visitors from all over the world, ranging from risk and insurance management executives to brokers, insurers and service providers.

Although the Cayman Islands has already been established as an insurance company domicile, at the start of 2012, the jurisdiction announced that it would seek to challenge Bermuda’s supremacy as the leading domicile for insurance companies serving the United States’ market. Unlike Bermuda, the Cayman Islands will not seek equivalence with the EU Solvency II Directive, meaning that the territory will in theory attract insurers looking to circumvent the stringent capital buffer requirements.

It should be reminded that the Cayman Islands is 2nd only to Bermuda, which is the largest captive insurance domicile in the world.

In attendance on behalf of the Cayman Islands were Chairman of the Insurance Managers Association of Cayman (IMAC), Clayton Price; the Head of Insurance Supervision for the Cayman Islands Monetary Authority (CIMA), Gordon Rowell; and representatives from over 20 private sector companies, including banks, insurance managers and auditors.

Rowell commented the conference: “As the second largest captive jurisdiction globally, the Cayman Islands presence at RIMS is critical to our ongoing success. CIMA hosted several positive meetings with clients – both existing and potential – and we look forward to continuing to strengthen our relationship with the Insurance Managers in promoting the Cayman Islands as a premium financial services jurisdiction for captives and reinsurance.”

Price said: “IMAC, CIMA and the Cayman Islands government’s participation at RIMS is instrumental in ensuring that the Cayman Islands remains on the cutting edge as an insurance domicile. The 2012 RIMS was well attended, and presented a tremendous opportunity to meet with thousands of key decision makers in the insurance industry all-in-one location. The Cayman delegation attracted a large number of visitors interested in finding out more about business in Cayman, and this afforded the 36 Cayman delegates a fabulous opportunity to deliver our message of integrity, intellect and innovation, which makes the Cayman Islands the domicile of choice.”

According to Cayman Islands Premier and Minister of Finance McKeeva Bush, the jurisdiction is currently finalizing a new legal and regulatory framework to help to pave the way for new opportunities as a leading domicile for captive insurance and a centre of excellence for reinsurance.

Cayman targets Brazilian investors

Saturday, May 19th, 2012

The government of the Cayman Islands has sought to strengthen business relationship with Brazilian investors by taking part in the recent Brazil Investment Summit.

According to the government, the event provided the opportunity to hold meetings with private equity and institutional investors and showed valuable insight into how the Cayman Islands is perceived internationally and what policy makers could do to maximize the territory’s potential to act as a conduit to investment flows to Brazil.

Meetings were held with members of Brazil’s private sector, key industry associations, including the Brazilian Alternative Investment Managers Association, and representatives from the Portuguese and American Chambers of Commerce during the visit to Brazil.

At the summit, a team from the government offered information on the financial services products being offered from the Cayman Islands, including in the maritime and aviation spheres.

Cayman Premier and Minister for Finance, Tourism and Development, McKeeva Bush, stated: “The government has given the Ministry of Finance a mandate to focus energies on emerging economies such as Brazil. Our private sector has long established strong links with Brazil. It is important that we do our part to ensure that the Cayman Islands service providers remain the service providers of choice for the facilitation of Brazilian investment flows.”

It is worth noting that, according to 2010 data from the International Monetary Fund (IMF), the Cayman Islands is one of the top 5 jurisdictions in the world for investment in and out of Brazil. Inward portfolio and direct investment flows amount to USD 27 billion annually, while outward flows amount to nearly USD 40 billion.

Cayman Regulatory Framework Endorsed

Tuesday, May 15th, 2012

Cayman Finance has welcomed the results of an independent study which places the Cayman Islands among only 2 offshore jurisdictions which have consistently implemented internationally-accepted standards on identity verification during due diligence (DD) processes. The study was carried out by Professor Jason Sharman of Griffith University in Australia.

Chairman of Cayman Finance Richard Coles said that this study confirms what Cayman Islands officials and industry have been saying, i.e. that the Cayman Islands is one of the most diligent jurisdictions in the world when it comes to the fight against money laundering and terrorist financing.

Coles noted that it is particularly important to see such positive results of an independent study after the investment that the Cayman Islands has made in enhancing its regulatory framework over the past 15 years. However, he stated that awareness of the high standards upheld in the Cayman Islands is unfortunately still lacking across the wider international community which seems to be dominated more by stories which perpetuate the old image of offshore being less regulated.

The study showed that the corporate service providers in the Cayman Islands were top of the table of over 183 countries because they required a full suite of identification documentation. Another offshore jurisdiction that had a perfect compliance record, according to the results of the study, was the Isle of Man.