Insurance sector predicts bumper year

| 23/04/2019 | 19 Comments

Cayman News Service(CNS): With 16 new (re)insurance company licences issued so far this year by the Cayman Islands Monetary Authority (CIMA), the insurance industry is expecting a banner year of growth in 2019. Experts say Cayman has established itself as a captives specialist and growth in that sector as well as digital assets and reinsurance underline its position at the forefront of evolution and change. The Insurance Managers Association of Cayman said that four portfolio insurance companies have been registered and five new reinsurer licences have been approved in principle by CIMA so far this year.

Total premiums recorded for the first quarter of this year were US$15.4 billion and total assets came in at US$68.95 billion, each area showing consistent increases since year-end 2018, according to a press release.

Erin Brosnihan, chairperson of IMAC, said the growth was positive. “We are confident of two distinct trends. First, the largest and most complex captives are most definitely Cayman’s area of speciality, and second, we are witnessing an upsurge in new risk areas, showcasing the expertise of our managers, service providers and our regulator,” she said.

Businesses are turning to captives as a viable alternative to insurance in the commercial market, the experts believe, due in part to the potential for significant dividend payments that would normally have been paid as premiums to commercial insurers. Businesses of all sizes and across industries, from non-profit organisations to food manufacturers, are benefiting from captives through the increased accessibility of the group captive model.

The Cayman Islands remains one of the world’s leading group captive jurisdictions, with 120 group captives totalling $3,013,772,649 in premiums from over 5,000 shareholder-insureds. Although there was an overall drop in the number of captives, this was anticipated.

“With some historical market softening, though possibly facing some hardening of those same rates, some captives have come to the end of their natural life cycles,” said Brosnihan. “Mergers and consolidations continue, particularly in the healthcare space, where the Cayman Islands has dominated for decades. As a mature industry, it is only natural that some captives will run their course. Based on our Q1 numbers, it is clear that growth and evolution continues apace with new formations.”

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Category: Business, Financial Services

Comments (19)

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  1. Anonymous says:

    Dear God! Please look up what CAPTIVE insurance is before commenting!

  2. Anonymous says:

    There seems to be a broad misunderstanding here of what this article is about. Captive insurance is a way for companies to self insure (for risks that regular retail insurance does not cover, or covers at a very high cost). This has no bearing whatsoever on local retail insurance companies and your personal health, auto or home insurance.. The captive insurance industry here employs hundreds of Caymanians in good, well-paying jobs and contributes $millions to the economy. It is a vibrant part of an industry that is well-respected for its integrity and quality.

  3. Anonymous says:

    Dem betta put a back-light pon it!

  4. Anonymous says:

    Mr Erin, my friend died , because one of your insurance friends denied claim after claim.
    She ran out of money and past away.

  5. Anonymous says:

    Most of the insurance business in the Cayman Islands is little more than a legalized scam. They lobby our incompetent politicians to ensure that the applicable laws are written in their favor and leave the government carrying the risk that they don’t want to cover.

    If the current government does not take immediate action then there needs to be some accountability at the ballot box.

  6. Anonymous says:

    Tax them for the privilege of hiding their money here.

  7. Anonymous says:

    By ‘bumper’ year and ‘growth’ they mean taking whopping premiums to ensure that the risk business they are in carries no risk. Remember how after any disaster premiums go up, yet for all the years there are no disasters the premiums collected during those times were suddenly not available to cover the damage. Insurance companies are just legal crooks.

  8. Anonymous says:

    Insurance: the bottom feeders of the financial services industry.

  9. BeaumontZodecloun says:

    Insurance: Paying for the privilege of betting against yourself, and hoping you lose.

  10. Anonymous says:

    The headline should read, ” Insurance companies continue to make millions off scamming the public”

  11. Anonymous says:

    Thieves.

  12. Anonymous says:

    Second greatest scam of all time.

  13. Anonymous says:

    Yes, they continue to have “bumper” years off our backs but Heaven help us if/when we have a claim!

    • Sensible Solution says:

      Captive insurance companies provide a valuable alternative to traditional insurance for their parent companies risks. They don’t charge you a cent as all they do not insure local risks.

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