The Cayman Islands Monetary Authority reported in its fourth quarter results that 33 new captives were formed in 2017. The industry reported premiums of US$12.4 billion and total assets at US$61 billion.
“This is fantastic news,” said Erin Brosnihan, chair of the Insurance Managers Association of Cayman. “The last quarter of 2017 saw heightened activity, both for mergers and new formations, which we anticipated. We pride ourselves on leading the way in insurance innovation, and this is where our group and pure captives particularly shine.”
Cayman remains the global leader in healthcare captive insurance, with almost half of its captives represented by this sector. Medical Malpractice Liability (MedMal) continues to be the largest primary line of business with approximately 32 percent of companies reinsuring MedMal. Worker’s compensation is the second largest segment, with 21 percent of companies assuming this risk.
“We have over 40 years of experience in healthcare captives, so this is not surprising,” Ms. Brosnihan said. “Cayman has a first-class reputation in this space. Each year we partner with more and more healthcare systems – systems that are growing larger, more integrated, and definitely more complex. Still, we are able to provide them with tailored solutions, which is why we are number one.”
She said the 33 captive formations, during a relatively soft insurance market last year was testament to the continued attractiveness of the domicile.