Captive insurance growth

Mary-Lou Gallegos

Monday,  February 7, 2005

There were 76 new captive insurance companies licensed with the Cayman Islands Monetary Authority in 2004, totalling 694 by the year-end, representing US$6 billion and reporting assets of US$22 billion.

Most of the new captive insurance companies were healthcare with 40 new licenses. Other captives included workers compensation, general liability, property, product liability and auto liability. 

There were 13 segregated portfolio companies licensed, bringing the total number to 93 with 394 segregated portfolios operating within them. Forty-three new portfolios were established in 2004.

“It was another fantastic year for the captive market and this growth is a remarkable show of continued confidence in the jurisdiction as a leading domicile for the establishment and management of captives,” said Mary-Lou Gallegos, Head of Insurance Supervision.

Monetary Authority requirements to establish a captive insurance company include: business plan, three years financial projections, details of reinsurance agreements, personal details and references for proposed directors and shareholders and confirmation of appointment from a licensed insurance manager and approved auditor.

The minimum amount of capital requirements include: US$120,000 for companies effecting general business, US$240,000 for companies effecting long term business and US$360,000 for companies effecting both general and long term.

Most captive insurance companies in the Cayman Islands come from North America, followed by the Caribbean, the Pacific and Europe. 

To find out more information about captive insurance companies in the Caymans, visit www.cimoney.com.ky

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