Cayman To Target Reinsurance Business

by Amanda Banks, Tax-News.com, London

15 December 2011

Cayman Islands Premier McKeeva Bush has outlined plans to introduce a streamlined work permit regime to encourage reinsurance business to the islands.

Bush announced at the recent Cayman Captive Forum that the government would introduce a number of incentives for reinsurance businesses, namely 10-year work permits for senior executives of companies, and reduced work permit fees.

In response to the Cayman Islands' announcement, Bermuda's Premier Paula Cox insisted that the decision would not be an immediate challenge to the territory's industry-leading position. She underscored that Bermuda has a tried-and-tested, acclaimed regime for reinsurance entities and said that simply offering attractive immigration controls, such as the Bermuda government has recently introduced, would not impact demand for the island's offerings.

In announcing the incoming regime, Bush pointed out that unlike some other territories - including Bermuda, the Cayman Islands will not seek equivalency with the European Union's stringent capital adequacy requirements under Solvency II, providing appeal for reinsurers seeking to bypass the stringent capital controls.

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