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Cayman Islands
Marsh Management Services Cayman Ltd.
Head of Office: Clayton Price
Sales Coordinator: Clayton Price
Office Address
Governors Square
Building 4, 2nd Floor
23 Lime Tree Bay Avenue
Grand Cayman,
Cayman Islands |
Telephone: (345) 914-5722
Facsimile: (345) 949-7849
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Mailing Address
P.O. Box 1051
Grand Cayman, Cayman Islands
Basic Information
| Location |
The Cayman Islands are a British Crown colony consisting of three small islands in the Western Caribbean, approximately 460 miles south of Miami. |
| Accessibility |
The islands are accessible on regularly scheduled flights from Miami, Houston, Charlotte, Atlanta, Tampa, Orlando, London - UK, Kingston, Jamaica, Philadelphia, New York, Detroit and Toronto, Canada. |
| Applicable Legislation |
The Insurance Law (2003 Revision) |
| Number of Captives |
777 as of 31-Dec-2008 |
| Regulatory Agency |
The Cayman Islands Monetary Authority |
Regulatory Issues
| Acceptable Insurance Subsidiaries |
Pure and Association Captives, Rent-a-Captive Vehicles, Deferred Variable Annuities, Special Purpose Vehicles, Segregated portfolio Companies (SPC's)
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| Acceptable Corporate Forms |
Stock or Mutual |
| Permitted Business |
Class B Insurer - Non-Cayman Parent (including member companies) risk only |
Direct Insurance Permitted |
All Lines Permitted |
| Reinsurance Permitted |
All Lines Permitted |
| Policy Form and Rate Approval |
None required |
| Local Office Requirement |
Registered office and licensed management company required
Minimum of two directors required (no resident director required) |
Capitalization & Solvency Requirements
| Restricted Class B insurer |
No requirements. |
| Unrestricted Class B insurer |
The minimum capitalization must be posted in cash. Letter of credits or cash are acceptable to secure any excess surplus. |
| Capitalization |
Business Written
General Business (Non-Life)
Long-Term Business (Life)
General & Long Term combined
Minimum Net Worth |
$120,000
$240,000
$360,000 (in SPC's only) |
| Solvency |
The Head of Insurance Supervision has the authority to make regulations on liquidity margins and ratios. |
| Premium Taxes |
No local premium tax is imposed.
Premium for US risk may be subject to Federal Excise Tax of 4% on direct policies and 1% on reinsurance policies/policies of life insurance if the captive is viewed as an insurance company for US federal tax purposes. |
| Intercompany Loans |
Parent loans are subject to approval of the Head of Insurance Supervision. Permission is not unreasonably withheld. Parent loans are generally permitted for large U.S. firms. Interest earned on the loan by the captive may be subject to 30% U.S. federal withholding tax. |
| Investment Restrictions |
There are no formal investment restrictions. However, a captive's investment program will be subject to the Head of Insurance Supervision's approval when the business plan is submitted. Also, the Head of Insurance Supervision must be notified of any significant alterations to the investment program.
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| Taxation |
No income tax, plus 20-year guaranteed tax-exempt status upon incorporation. |
| Reporting Requirements |
- Audited financials filed within six months of fiscal year end;
- IASO (Annual Statement of Operations) required within 14 days of calendar year end;
- Certified loss reserves required for long-term business.
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