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ARTICLE · 29 SEPTEMBER 2005

Segregated Portfolio Companies and Insurance

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The Cayman Islands has continued to improve its position as a jurisdiction of choice for captive insurance companies. As at 31 October 2004, 671 insurance captives were licensed by the Cayman Islands Monetary Authority of which 50 were new licence grants in 2004. The numbers of new license grants are on the rise year on year.

Cayman IslandsInsurance
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The Cayman Islands has continued to improve its position as a jurisdiction of choice for captive insurance companies. As at 31 October 2004, 671 insurance captives were licensed by the Cayman Islands Monetary Authority of which 50 were new licence grants in 2004. The numbers of new license grants are on the rise year on year.

It is one of several jurisdictions that provides for a "cellular" captive company (known as a segregated portfolio company or "SPC"). This brings the benefit of statutory segregation of assets and liabilities to insurance companies looking to introduce new lines of business within an existing insurer so as to ring-fence the performance of the separate business lines. Cayman’s captive insurance market continues to flourish and with the recent changes in the Law, the popularity of the SPC seems set to grow as the benefits afforded to the insurance sector have now become generally available.

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