LoGB tells industry experts Cayman will stay competitive

(CNS): Speaking at the opening of the country’s largest annual conference — Cayman Captive Forum, , the Leader of Government Business, Kurt Tibbetts said Wednesday, 3 December, that despite the stresses exerted by the state of the global economy, the government’s fiscal policy for the coming financial year was designed to keep the Cayman Islands “business-friendly” and economically stable in these turbulent times.

“We will continue our policy of constructive engagement on international issues so that those who matter know, understand and respect us and so that we stay faithful to the international standards and norms, existing and evolving, that are necessary for a responsible and reliable partner in the global financial system,” he said.

In his speech to local and international delegates from the captive industry, he said as stakeholders in the sector the CI government was committed to ensuring that the financial services offering remains strong and competitive. He said it was the government’s duty to uphold what a recent US Government Accountability Office report on the Cayman Islands described as  a “…reputation forstability and compliance with international standards, business friendly regulatory environment and prominence as an international financial centre.”

Cayman’s Captive market, which the country has been actively pursuing since 1979, now has more than 770 captives domiciled writing US$7.6 billion of premiums and with over US$35 billion of assets under management, the LoGB said.

“Cayman’s public-private sector committees, working groups and task forces help ensure that our legislation and regulatory regime remain current.  We will be hosting a follow-up IMF assessment next year, in preparation for which the Insurance Law will be amended to ensure that it clearly responds to the relevant IAIS standards as well as to the marketplace.”

He also noted there was a drive to create a more conducive business environment for the reinsurance sector. “The reinsurance business plays to Cayman’s natural strengths.  It fits well with Cayman’s institutional business specialisations, including a vibrant insurance sector, professional infrastructure, experience in reinsurance products such as sidecars and catastrophe bonds, and the presence of the hedge fund industry – which has been a key source of capital for reinsurers.”

Work was going on to support the roll-out of an attractive regime that promotes commercial certainty for prospective reinsurance firms, he said.

Tibbetts added that the government’s partnership with IMAC and participation in key healthcare insurance events such as the Risk Insurance Management Society and the American Society for Healthcare Risk Management, contribute to Cayman’s reputation in the US market.  “We stand shoulder-to-shoulder with the private sector under the “Cayman Islands Financial Services” banner at these events, and believe this solidarity is even more important in the current environment,” he added.