Cayman Formations Rise by 57%
by Louise on November 30, 2012
The Cayman Islands Monetary Authority has licensed over 55 applications in the first ten months of 2012. This is 57% higher than the same period in 2011.
Despite the soft market 2012 is expected to see the most new formations in Cayman since the hard market of 2004, said Gordon Rowell, head of insurance supervision at CIMA at the 2012 Cayman Captive Forum.
As of 31st October 2012, the domicile has 737 captives, including 411 captives.
Total premium written by captives was reported at US$11.8bn, up from US$8.8bn as at 30th June 2012 (34% increase).
Total assets under management were reported at US$88.1bn, up from US$78.9bn as at 30th June 2012 (12%).
However, Rowell said as long as the commercial market has significant capital, price competition will continue. “Even with the advent of Hurricane Sandy, this is not likely to significantly impacted.
“The only area where price discipline seems to be taking effect is in workers’ competition but even here, payroll is suppressed due to economic conditions.” Rowell the soft market made it a “buyers’ market”, which meant it is hard for group captives to attract new participants, fronting is even more limited today than in prior years, and tort inflation still exceeds the CPI by 2,3 or 4%.
Source: Captive Review.
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