With more than 800 insurance companies registered in the Cayman Islands by the Cayman Islands Monetary Authority (CIMA), the British Overseas Territory is emerging as an international insurance hub. One potential area for growth is Reinsurance, with more than 600 Captive insurance and Reinsurance companies and several large Reinsurance companies domiciled on Grand Cayman.
The growth in the Cayman Islands’ Reinsurance market can partially be attributed to the territory’s high Moody’s Investment credit rating of Aa3 and its growing economy indicated by a projected GDP growth of 3.0 percent by the end of 2018.
Grand Cayman’s infrastructure is particularly attractive to companies holding risks in North America due to the island’s close proximity to the United States, tax neutral status, strong Anti-Money Laundering regulations and cooperative agreements with every major international regulatory authority. Additionally, CIMA has nurtured a favourable regulatory environment, which allows Reinsurers to choose adherence to an internationally recognised accounting regime that suits their lines of business.
“Domiciling in the Cayman Islands allows us to be under the same accounting regime as our clients. This makes it much easier and more transparent as we are reporting under the same requirements. It is also helpful that Cayman has not sought Solvency II equivalence which is not relevant to companies who do not have clients with an EU footprint,” said David Towriss, CEO of Aureum RE, a Camana Bay tenant and leading life and annuity Reinsurance company focusing on clients in the North American market.
For more: http://www.wboc.com/story/38891645/the-cayman-islands-emerges-as-a-reinsurance-hub