Wealth of experience and technical knowledge the keys to success

Drawing upon the collective wisdom of stakeholders, Cayman’s government is well positioned to enact policy, legislation, and regulation that meet global standards, says The Hon. Wayne Panton, Premier of the Cayman Islands.

As the Cayman Islands anticipates our border reopening, we look forward to the return of all types of international travellers, including our regular guests who visit these shores for in-person captive insurance business.

Whether it happens face to face or virtually, you will likely already know as part of the normal monitoring of your business that Cayman’s economy has demonstrated resilience and remains strong, particularly in the financial services space.

According to the Economics and Statistics Office Annual Economic Report 2020, economic activity in the Cayman Islands as measured by gross domestic product (GDP) in real terms is estimated to have decreased by 6.7 percent. Yet, the finance and insurance services sector, which includes segments of the financial services industry, remained the largest contributor to GDP and grew slightly, by an estimated 0.3 percent for the year.

It’s worth noting that the statistics show the Cayman Islands has been fiscally prudent since the COVID-19 pandemic affected the local economy. While in 2020, central government recorded a deficit of CI$116.4 million (an understandable departure from the 2019 surplus of $101.9 million, considering the added healthcare costs and economic stimulus measures), outstanding debt fell to $248.6 million.

This continues a positive trend, with the previous figures being $284.4 million in 2019 and $418.7 million in 2018.

Leading the way

The Cayman Islands and its financial services industry, including captives, remain stable, and we continue to maintain our place as a leading jurisdiction in global finance.

Contributing to Cayman’s success is the wealth of experience and technical knowledge in multiple disciplines. In the captive insurance market that equates to Cayman excelling at attracting sound business and catering to the needs of our clients. Our robust legislative framework meets captives’ needs regarding management and structure, and gives our regulator the tools to adhere to global standards.

The Cayman model relies on collaboration among our key stakeholders. Government does not work in isolation, and regularly seeks input from our local financial services regulators, including the Cayman Islands Monetary Authority; Cayman International Insurance (CII); and our industry professionals.

Government commends CII for its continual feedback about the captives sector, and support for government initiatives. By drawing upon the collective wisdom of stakeholders, government is well positioned to enact policy, legislation, and regulation that meet global standards, and addresses the needs of those looking to domicile captives in the Cayman Islands.

I am confident that the Cayman Islands will remain a top jurisdiction for all types of international business, including captives. The ongoing stability of government and our financial services industry, spanning decades, confirms that Cayman is a domicile of choice for captives.

As we continue to respond to global developments and opportunities, Cayman is well placed to continue attracting investors in the captives market.