Cayman looks ahead to the post-COVID-19 world

The last two years have been an interesting challenge for the members of the Insurance Managers Association of Cayman (IMAC) as the well-documented challenges caused by the COVID-19 pandemic meant we had less face-to-face time with clients and instead were forced to rely on virtual meetings, while changes to existing working practices meant an increase in working from home, and recruitment of qualified applicants, particularly if coming from overseas, became more difficult.

This resulted in a strain on resources that was somewhat compounded by the hard market, meaning additional captive enquiries, formations and new captive programmes, while we also experienced an increase in regulatory obligations and the adoption of additional rules and guidance needing to be implemented by clients.

We are however excited to welcome everyone back to the Cayman Captive Forum this year, which is looking as though it will be one of our highest attendances on record, both in person and also via a digital format for those who can’t attend or may still have travel restrictions imposed by their company.

Any association or conference has to evolve in the way it manages events in the post-COVID-19 world. We were fully digital last year but we recognise the importance of meeting in person, which is highlighted by the 2022 registration numbers, as many of our clients and friends couldn’t wait to return in person. The ability to travel, to have meetings in person and having so many people on the islands is great, but we also need to have digital content so that a wider audience can participate and enjoy the extensive and informative sessions.

The Cayman Captive Forum offers many networking opportunities in conjunction with a great educational format. These sessions come from all areas of the industry and as people look at the content for this year’s event, we hope they’ll start to have ideas for next year, and we’ll start planning early for that once again in early 2023.

One of the main things that the Cayman Islands Monetary Authority (CIMA) does excellently, and the jurisdiction does make work very well, is proportionality. As a highly regulated jurisdiction, the regulations are always considered from a proportional perspective and that’s where the insurance managers come in as far as interpreting and dealing with those regulations, and then working collaboratively as regulations are added or updated. I want to give a shout-out and a thank you to all the members, not only of the executive committee but all the committees, who continue to propel the jurisdiction forward as well as the association.

All the members of our committees, which are made up of people from our member firms, contribute when they attend and participate in the various meetings, so it fills you with a sense of pride when you see how many people collaborate in a highly competitive industry. Having this kind of collaboration is key to our success, whether that is the conference committee and their excellent work or looking at legislation, the marketing efforts, or our educational sessions. We present content throughout the year but also hold various industry social events.

The money we raise from our social events and the forum goes into the scholarship fund to support Caymanian students’ educational development. We are dedicated to providing young people with the opportunity to study abroad to gain knowledge, experience, confidence and a fresh perspective and to use this experience to build their careers and to enrich their lives and communities. There’s a real sense of pride from IMAC that we’re able to help young Caymanian students to meet those dreams, which they would not be able to achieve without your help.

A broad base

Healthcare currently makes up about 30 percent of captive licences and historically has been the single biggest industry sector, but we are conscious that we have an ever-broadening base of different industries. We very carefully plan the forum so that the content appeals to a wide audience, so we have been cognisant with the selection of what has been chosen and what we’re going to discuss, so that we have that broader remit in mind.

There continues to be a healthcare element to this year’s event, and we’re also looking at other wide-ranging topics that we believe are going to be important in the future, particularly in the area of environmental, social and corporate governance (ESG) factors. CIMA is focusing on this area and we anticipate, like any good corporate citizen, that every insurance entity will need to look at this area in the future, not just from a risk perspective as the insurer or reinsurer but also on behalf of its parent, insureds or other stakeholders. We will all be making sure that the boards continue to consider items that are going to be key to their success.

Looking at 2023 we’re seeing growth in many areas such as pure captive insurance as well as the reinsurance market, while third party writers and Segregated Portfolio Companies and Portfolio Insurance Companies continue to grow in popularity. We’re pleased to note that a number of reinsurers are setting up predominantly in the life and annuity space, and we anticipate growth in the number of self-managed entities, primarily being class D licensees.

Cayman has a growing number of entities which are self-managed and we believe that this creates a greater depth of offering for the jurisdiction. It broadens the base of the insurance industry within Cayman and attracts talent from a local perspective, creating a different avenue for future growth of the Caymanian workforce, and also brings top talent from around the world.

The Cayman International Reinsurance Companies Association (CIRCA) was formed in early 2021 to represent the self-managed entities and IMAC works closely with CIRCA for the benefit of the industry and the jurisdiction.

As all these areas continue to grow, so will the staffing requirements of the insurance managers as will the number of entities that will have a physical presence, and we believe the Cayman Islands is ideally positioned for growth as it continues to be a highly professional, proportionally regulated and attractive jurisdiction.

To find out more visit caymanintinsurance.ky/