Tibbetts Relays Positive Message To Cayman Captive Conference

by Amanda Banks, Tax-News.com, London

12 December 2008

Kurt Tibbetts, the Leader of Government Business in the Cayman Islands, told delegates at the annual Cayman Captive Forum last week that the jurisdiction's offshore finance industry remains in a strong position despite the global financial turmoil and that the government remains committed to growth in the captive insurance sector.

"While there may be risk elsewhere, I know there is no risk to say that this year’s conference will be particularly significant given global events. Never has risk management been as important as it is in today’s business climate," Tibbetts told the conference, which was held from December 2 to 4. He added:

"As stakeholders in our captive insurance industry, I felt it would be appropriate for me to take this opportunity to re-affirm the Cayman Islands government’s commitment to ensuring that our financial services offering remains strong and competitive in these turbulent times.

"We see as our duty to uphold what a recent US Government Accountability Office report on the Cayman Islands described as a '…reputation for stability and compliance with international standards, business friendly regulatory environment and prominence as an international financial centre.'

"In particular, we remain committed to ensuring that Cayman’s captive insurance industry remains a success. We have been actively pursuing the captive insurance market since 1979 and have more than 770 captives domiciled writing USD7.6bn of premiums and with over USD35bn of assets under management."

Tibbetts said that the jurisdiction's various public-private sector committees, working groups and task forces will seek to ensure that the Cayman Islands' legislation and regulatory regime remains current. He explained that the Cayman Islands will be hosting a follow-up International Monetary Fund assessment next year, in preparation for which the Insurance Law will be amended to bring it in line with both the relevant International Association of Insurance Supervisors standards, and the requirements of the global marketplace. "We have identified, for example, with assistance from the private sector, an opportunity to create a more conducive business environment for the reinsurance sector," he observed.

Tibbetts added: "The reinsurance business plays to Cayman’s natural strengths. It fits well with Cayman’s institutional business specialisations, including a vibrant insurance sector; professional infrastructure; experience in reinsurance products such as sidecars and catastrophe bonds, and the presence of the hedge fund industry – which has been a key source of capital for reinsurers. There has been a good deal of work ‘behind the scenes’ so to speak, to support the roll-out of an attractive regime that promotes commercial certainty for prospective reinsurance firms and we are quite close now to doing so."

Despite the stresses exerted by the state of the global economy, Tibbetts said that the government’s fiscal policy for the coming financial year is designed to keep the Cayman Islands "business-friendly and economically stable."

"We will continue our policy of constructive engagement on international issues so that those who matter know, understand and respect us and so that we stay faithful to the international standards and norms, existing and evolving, that are necessary for a responsible and reliable partner in the global financial system," Tibbetts told the Forum.

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