Originally published in June 2003
As the tally of Cayman Island captive insurers sails through the 600 barrier, Anthony Menzies of Hunter & Hunter goes back to basics in explaining why the captive option remains so enduringly popular.
With no end to the hard market in sight, it seems nothing can stop the onward march of the captive insurance industry. The demise of two of the main fronting carriers, Legion Insurance Company and Reliance National, and the withdrawal of many others from the market, have certainly created an almighty headache for the industry, but the problem is surmountable, or so it would seem. New innovations are in the offing, including at least one initiative by a group of blue-chip captive owners to establish their own shared fronting facility, and all the while the number of captive incorporations in the established offshore domiciles continues to increase.
