The Cayman Islands Monetary Authority (CIMA) is hosting senior members from the International Association of Insurance Supervisors (IAIS) as well as industry participants from June 18 through the 21 for the IAIS Global Seminar and Committee Meetings.
The impact of Solvency II as well as other burgeoning international regulation will be the focus of the seminar. The Cayman Islands, the second largest captive domicile in the world with $11.8 billion in premiums will acutely feel the impact of any nascent regulation.
CIMA has been monitoring the regulatory situation in Bermuda, which has been working to meet Solvency II requirements in the hope Europe will consider segmented equivalence for Bermuda, which will allow captives to be treated differently, however the exemption has not been tested.
The Cayman Islands have their own regulatory platform that is in compliance with international standards. CIMA is currently monitoring Solvency II’s potential impact on the captive insurance market and is waiting until it can quantify the changes before it contemplates adapting the new equivalency requirements.
Chairman of the Insurance Managers Association of Cayman (IMAC), Clayton Price, said, “IMAC stands firmly behind CIMA’s balanced and pragmatic approach to Solvency II. The Cayman Islands has a completely transparent regulatory model that has withstood the test of time. It is the unintended consequences that need to be carefully considered. Unless captives are carved out of this regulation that has been designed for commercial re/insurers, we believe that Solvency II will needlessly drive up capital costs for our North American Clients.”