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Evolution – How Cayman Is Transforming Itself into an International Insurance & Reinsurance Jurisdiction

Offshore domiciles like the Cayman Islands maintain their edge by creating new solutions and offering key advantages that others can't match.
By: | March 20, 2017 • 4 min read

Today’s captive landscape looks very different than it did a decade ago. Likewise, Cayman has been undergoing a transformation, and doubtless will continue to see change over the next decade to come.

Healthcare has been one of the cornerstones upon which Cayman built its captive business. However, the last few years have seen growth in international insurance and reinsurance, particularly around commercial reinsurers looking to establish themselves within the Cayman Islands with the goal of writing life and annuity, pension and long-tail liability coverage.  Some of the business from the commercial reinsurance market has been coming from markets such as Asia and Latin America, as well as the U.S.

It is a natural diversification from a consolidating healthcare market for Cayman to explore commercial reinsurers, Class D’s and Class B3s as future growth areas for the jurisdiction. A lot of these new carriers have an international reach beyond one specific market.

To make these changes it takes a collaborative model for regulators and legislators to stay in tune with the needs of the captive industry. Cayman is particularly fortunate to have a commercially savvy regulator interacting regularly with the Insurance Managers Association of Cayman (IMAC) to ensure a consistent approach to such business.

Regulators, lawyers, insurance managers, accountants, finance, and all members of Cayman’s established infrastructure work together. CIMA, for example, meets with IMAC on a quarterly basis to discuss opportunities for innovation allied to the operational day-to-day requirements of either party.

That is how the need to expedite ILS and CAT bond licensing approvals was identified. CIMA recently announced accelerated approvals for these licenses.

“We’ve moved beyond the traditional administrative approach for captives and adopted a more consultative approach with our clients,” said Adrian Lynch, of the Insurance Managers Association. “We operate as a very cohesive unit. When we have fluidity between regulators, the commercial environment and third party service providers, the jurisdiction can move inexorably forward.”

Cayman’s 40 years of experience in the captive space forms the foundation of its offering model and value proposition. Cayman providers can act as trusted advisers for clients.

That experience and expertise continues to evolve in what is an ever competitive and expanding captive industry.

Future Growth

Adrian Lynch, Insurance Managers Association of Cayman

Onshore domiciles have developed in the in the U.S., presenting a challenge to the more established international strongholds such as Cayman. But competition drives innovation and diversification.

In the last two to three years, Cayman has seen significant consolidation within the healthcare space among larger hospital systems resulting from Affordable Care Act in the US.  It will be interesting to see what emerges as an alternative to the ACA and its impact on the industry.

Cayman’s aim at diversification has required the jurisdiction to adjust its own value proposition. Captive managers who have built up healthcare-specific expertise, for example, are now also looking to invest in areas such as underwriting, actuarial, and business development.

Another challenge that some onshore jurisdictions face is that, although they have active captive legislation, they may lack strong surrounding infrastructure.

Cayman holds a uniquely advantageous position as it essentially has a 40-year head-start on most U.S. jurisdictions. Cayman’s deep skill base compares favourably to some of the other top-drawer jurisdictions in terms of their ability to meet all the needs of any new captives or insurance or reinsurance companies being established.

“CIMA has been working with local service providers for so long that it has become a true partnership between government and stakeholders,” Derek Stenson of Walkers added.

All insurance management leadership is looking at their insurance market and trying to ensure they can compete, continue to grow and meet the requirements of their stakeholders. It is a natural evolution for any jurisdiction such as Cayman to look 5 to 10 years down the line at its sources of business.

Cayman has been a world leader in innovation and alternative risk thought leadership, from establishing the Harvard Captive, to being the original point of embarkation for ACE & Excel, through to the original ILS structures.

As the world’s largest hedge fund jurisdiction by registered funds, Cayman has a solid platform for growth fuelled by collaboration of all stakeholders.

We are all in essence renting the world from the future generation, and it is indeed our responsibility to ensure a future for the next generation of insurance and reinsurance executives.  Cayman takes that responsibility very seriously.

To learn more about the Cayman Islands’ captive infrastructure, visit http://www.imac.ky/.

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This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with IMAC. The editorial staff of Risk & Insurance had no role in its preparation.




Insurance Managers Association of Cayman (IMAC) is a non-profit organisation run by the insurance managers of the Cayman Islands. In operation since 1981, IMAC’s aim is to act as both regulatory liaison with the Cayman Islands Government and to promote the Cayman Islands as a domicile of choice for captive insurance companies. IMAC hosts the world’s largest captive insurance centric conference, attracting approximately 1,500 clients, directors and officers of captives, service providers and captive managers annually. For more information on IMAC visit www.caymancaptive.ky.

Risk Management

The Profession

After 20 years in the business, Navy Pier’s Director of Risk Management values her relationships in the industry more than ever.
By: | June 1, 2017 • 4 min read

R&I: What was your first job?

Working at Dominick’s Finer Foods bagging groceries. Shortly after I was hired, I was promoted to [cashier] and then to a management position. It taught me great responsibility and it helped me develop the leadership skills I still carry today.

R&I: How did you come to work in risk management?

While working for Hyatt Regency McCormick Place Hotel, one of my responsibilities was to oversee the administration of claims. This led to a business relationship with the director of risk management of the organization who actually owned the property. Ultimately, a position became available in her department and the rest is history.

R&I: What is the risk management community doing right?

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The risk management community is doing a phenomenal job in professional development and creating great opportunities for risk managers to network. The development of relationships in this industry is vitally important and by providing opportunities for risk managers to come together and speak about their experiences and challenges is what enables many of us to be able to do our jobs even more effectively.

R&I: What could the risk management community be doing a better job of?

Attracting, educating and retaining young talent. There is this preconceived notion that the insurance industry and risk management are boring and there could be nothing further from the truth.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

In my 20 years in the industry, the biggest change in risk management and the insurance industry are the various types of risk we look to insure against. Many risks that exist today were not even on our radar 20 years ago.

Gina Kirchner, director of risk management, Navy Pier Inc.

R&I: What insurance carrier do you have the highest opinion of?

FM Global. They have been our property carrier for a great number of years and in my opinion are the best in the business.

R&I: Are you optimistic about the US economy or pessimistic and why?

I am optimistic that policies will be put in place with the new administration that will be good for the economy and business.

R&I: What emerging commercial risk most concerns you?

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The commercial risks that are of most concern to me are cyber risks, business interruption, and any form of a health epidemic on a global scale. We are dealing with new exposures and new risks that we are truly not ready for.

R&I: Who is your mentor and why?

My mother has played a significant role in shaping my ideals and values. She truly instilled a very strong work ethic in me. However, there are many men and women in business who have mentored me and have had a significant impact on me and my career as well.

R&I: What have you accomplished that you are proudest of?

I am most proud of making the decision a couple of years ago to return to school and obtain my [MBA]. It took a lot of prayer, dedication and determination to accomplish this while still working a full time job, being involved in my church, studying abroad and maintaining a household.

R&I: What is your favorite book or movie?

“Heaven Is For Real” by Todd Burpo and Lynn Vincent. I loved the book and the movie.

R&I: What’s the best restaurant you’ve ever eaten at?

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A French restaurant in Paris, France named Les Noces de Jeannette Restaurant à Paris. It was the most amazing food and brings back such great memories.

R&I: What is the most unusual/interesting place you have ever visited?

Israel. My husband and I just returned a few days ago and spent time in Jerusalem, Nazareth, Jericho and Jordan. It was an absolutely amazing experience. We did everything from riding camels to taking boat rides on the Sea of Galilee to attending concerts sitting on the Temple steps. The trip was absolutely life changing.

R&I: What is the riskiest activity you ever engaged in?

Many, many years ago … I went parasailing in the Caribbean. I had a great experience and didn’t think about the risk at the time because I was young, single and free. Looking back, I don’t know that I would make the same decision today.

R&I: What about this work do you find the most fulfilling or rewarding?

I would have to say the relationships and partnerships I have developed with insurance carriers, brokers and other professionals in the industry. To have wonderful working relationships with such a vast array of talented individuals who are so knowledgeable and to have some of those relationships develop into true friendships is very rewarding.

R&I: What do your friends and family think you do?

My friends and family have a general idea that my position involves claims and insurance. However, I don’t think they fully understand the magnitude of my responsibilities and the direct impact it has on my organization, which experiences more than 9 million visitors a year.




Katie Siegel is a staff writer at Risk & Insurance®. She can be reached at [email protected]