Trusts In Insurance Structures

Conyers has recently seen a significant increase in the use of trusts in the structuring of insurance transactions entered into by Cayman Islands licensed insurers in addition to their continued use in structuring the ownership of the insurers themselves.

This note will highlight the various ways Cayman Islands trusts are used to facilitate off-balance sheet Special Purpose Vehicle (SPV) structuring aspirations, as well as scenarios where trusts are required to hold underlying policies of insurance for administration, risk management and cost efficiency purposes.

Back to Basics

A trust is a legally binding arrangement whereby a person (known as a settlor) transfers assets to another person (known as a trustee) who is entrusted with legal title to the trust assets, not for his own benefit, but for the benefit of other persons (known as beneficiaries) or for a specified purpose.