The Amendment permits a new or existing SPC to incorporate a PIC
on behalf of a relevant cell or segregated portfolio. The
PIC, instead of the segregated portfolio, would then conduct the
relevant insurance business. Unlike the traditional segregated
portfolio or cell, a PIC will be a separate legal entity (i.e., an
exempted company limited by shares).
A PIC will not need to be separately licensed as an insurance
company as it will operate under the licence held by the SPC.
It will, however, be regulated by the Cayman Islands Monetary
Authority (CIMA). Among other things, a PIC must include in
its name the letters "PIC" or "P.I.C." or the
words "Portfolio Insurance Company," carry on insurance
business only in accordance with its business plan, maintain a
margin of solvency and adequate capital in accordance with
prescribed requirements (such requirements are still to come),
maintain adequate arrangements for the management of risks, and
maintain an effective
