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28.01.2015 01:25 Age: 50 days

Cayman Insurance amendments a welcome development for insurance industry

Amendments to the insurance law and associated regulations have been described by an industry insider as one of the most significant legal developments for Cayman’s insurance industry for many years, allowing insurers formed as segregated portfolio companies (SPCs) to enjoy the same benefits as incorporated cell companies in other jurisdictions, reports CNS Business.

These amendments, which came into force on 16 January, allow for an SPC to register subsidiary companies as portfolio insurance companies (PIC) with the Cayman Islands Monetary Authority (CIMA). Once registered, a PIC will be able to conduct insurance business in its own name. It will not need to be separately licensed as an insurance company but will be a separate legal entity.

Solomon Harris’ head of insurance, Paul Scrivener, commented, “I am very excited about portfolio insurance companies now being available in the Cayman Islands and delighted to have been closely involved in their development. This is the natural next step in the evolution of the SPC in the insurance sector and is an important additional tool in the tool box for Cayman. It provides a number of new opportunities for the use of SPCs, not least because it neatly overcomes the current inability of cells of the same SPC to be able to contract with each other.

“We have seen significant interest already from captive owners, prospective captive owners and consultants. It is not an understatement to say that this is one of the most significant legal developments for Cayman’s insurance industry since SPC legislation was first introduced in 1998.”