The Cayman Islands passed new insurance guidelines on January 16, which affect portfolio coverage companies (p.c).
these rules are designed to offer extra chance management options for insurers integrated as segregated portfolio groups (SPCs), developing more flexibility for his or her operation, in line with the insurance Managers association of Cayman (IMAC)*.
running within the essential standards of corporate regulation, based on English not unusual regulation, this legislation is considered greater robust than the integrated mobile company (ICC) structures provided in different jurisdictions, the IMAC said.
A SPC insurance corporation will be able to incorporate one of its cells by using organising a percent below it. as soon as the percent is registered with the Cayman Islands financial Authority (CIMA), it can write coverage commercial enterprise in its very own name, as a separate criminal entity – an exempted agency confined by shares, the affiliation defined.
Highlights of the brand new policies consist of:
• A % can settlement with different cells and other snap shots within the SPC, which enables reinsurance, quota sharing and threat pooling
• despite the fact that the percent is controlled with the aid of balloting stocks by using its SPC, participating stocks may be issued to those with an financial interest inside the p.c
• A % could have a distinctive board of directors to that of the controlling SPC, providing for extra governance flexibility
• The percent is diagnosed as a separate prison entity for U.S. tax functions, along with having its own federal tax identity quantity
• A percent may be wound up with out affecting its controlling SPC or other photos, or a % can merge with any other captive
• A overseas captive can redomicile to Cayman as a % wherein it can no longer be of enough length to perform as a stand-on my own captive.
The Cayman Islands is the arena’s 2nd largest captive abode, with approximately 760 corporations below CIMA’s supervision.
*coverage Managers association of Cayman (IMAC) is a non-earnings company run by using the insurance managers of the Cayman Islands. In operation due to the fact that 1981, IMAC’s purpose is to act as each regulatory liaison with the Cayman Islands government and to sell the Cayman Islands as a captive dwelling house.