Renewed optimism amid continued change

“Our awards celebrate the work done by the service providers that make the captives sector what it is.”

As 2021 draws to a close, and we reflect on another year dominated by COVID-19 and disruptions, there is however a sense of optimism in Cayman’s insurance industry where its practitioners will reflect on a period of further growth and innovation and its continued ability to adapt.

This is aptly illustrated by the fact that the Cayman Captive Forum is virtual this year. Frustrating, maybe, but it is progress and an illustration of the community’s ability to adapt after it was cancelled last year.

A new norm can be eyed after a long period of uncertainty. Overall, the captive insurance community in Cayman is feeling bullish about the prospects for 2022. Captive formations have continued throughout 2021, and there have been some interesting innovations. Businesses have spent a lot of 2021 thinking about the way the risks they face are changing. This could lead to changes to their captive programmes.

This is also being driven by the global hardening of the insurance and reinsurance market experienced during 2021. This has resulted in renewed interest in the use of captives as a risk management tool, as business realise the potential savings and the other benefits of gaining a better understanding of their own risks. As one of the foremost captive insurance domiciles in the world, Cayman will benefit from these changes.

This has all meant bullish growth. Cayman may well add as many as 40 new captives in 2021 which should more than counter some of the consolidations taking place. Within these stats, it can be seen that Cayman remains the leading domicile for healthcare captives and it is expected to have licensed 10 new captives for US healthcare clients in 2021.

The island remains best known as a centre for healthcare captives, but in reality it has long been the home for many different types of captives, and the sector is becoming increasingly diverse with every passing year. As the world comes to terms with the “new” risks it faces, from cyber to pandemics, Cayman will be among the most important jurisdictions globally for managing those risks. And captives will remain among the most useful risk management tools at its disposal.

Against this backdrop, it is a great time to celebrate the breadth and depth of expertise on the island. For the third year, in this issue we again highlight the best of the best service providers, highlighting their efforts and achievements.

The 2021 Captive International Cayman Awards are based on the outcome of hundreds of votes in support of service providers who stand out from the crowd. From captive managers to reinsurers to actuaries, our awards celebrate the work done by the service providers that make the captives sector what it is: an innovative, creative and thriving industry.

Changing times and disruption still—yes. But this is also an extremely dynamic time for an industry that has adjusted to the virtual world and is reaping the rewards of a renewed interest in the use of captives. All of those featured in our awards will be at the centre of that. Good luck to them—they are making a big difference to Cayman.

Wyn Jenkins, managing editor, Captive International