GEORGE TOWN, Grand Cayman--(BUSINESS WIRE)-- <\/p>\n
The impacts of Solvency II and other international regulation on captive insurance companies will be a topic of conversation in the Cayman Islands next week. <\/p>\n
Hosted by the Cayman Islands Monetary Authority (CIMA), senior members from the International Association of Insurance Supervisors (IAIS) and industry participants will be gathering 18 21 June for the IAIS Global Seminar and Committee Meetings to discuss and exchange ideas on current international regulatory initiatives affecting the insurance industry, including Solvency II Europes latest insurance regulation that introduces tighter capital and corporate governance requirements for commercial re\/insurers. <\/p>\n
As the Cayman Islands robust and transparent legislative and regulatory platform is already in compliance with international standards, CIMA continues to analyze Solvency IIs potential impact on the captive insurance market before it considers adapting the new equivalency requirements. Approximately 90% of Caymans insurance business is comprised of North American-based captive insurance companies, which are private self-insurance vehicles which do not carry the consumer risk as does a commercial re\/insurer, and therefore require a different regulatory model. <\/p>\n
Bermuda, which has been pushing ahead to meet the Solvency II requirements, has been told that the Europeans will consider segmented equivalence for Bermuda, which will allow captives to be treated differently, but this exemption has not yet been tested. <\/p>\n
Said Clayton Price, Chairman of the Insurance Managers Association of Cayman (IMAC): IMAC stands firmly behind CIMAs balanced and pragmatic approach to Solvency II. The Cayman Islands has a completely transparent regulatory model that has withstood the test of time, and is now the second largest captives domicile, holding more than $11.8 billion in premiums. He went on to say: 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. As a result of CIMAs considered stance on Solvency II, we are already seeing new captives redomestisticating here. <\/p>\n
Key personnel from the European Insurance and Occupational Pensions Authority (EIOPA), including Mr. Karel Van Hulle, who is the Head of Unit for Insurance and Pensions, Director General Internal Market and Services for the European Commission, are expected to attend the session along with CIMAs Head of Insurance Gordon Rowell. <\/p>\n
The IAIS is the global standard-setting body for regulation of the insurance industry. The Cayman Islands is a founding member of the IAIS Executive Committee and not only adheres to the IAIS Core Principles of Insurance Supervision, but actively assisted in the development of the revised Core Principles. <\/p>\n
Insurance Managers Association of Cayman (IMAC) is a non-profit organisation run by the insurance managers of the Cayman Islands. In operation since 1981, IMACs aim is to act as both regulatory liaison with the Cayman Islands Government and to promote the Cayman Islands as a domicile of choice for captive insurance companies. <\/p>\n
IMAC hosts the worlds largest captive insurance conference, attracting nearly 1,300 captive managers, service providers and directors annually. <\/p>\n<\/p>\n
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IAIS Heads To Cayman Islands to Discuss Solvency II and Financial Stability<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" GEORGE TOWN, Grand Cayman--(BUSINESS WIRE)-- The impacts of Solvency II and other international regulation on captive insurance companies will be a topic of conversation in the Cayman Islands next week. Hosted by the Cayman Islands Monetary Authority (CIMA), senior members from the International Association of Insurance Supervisors (IAIS) and industry participants will be gathering 18 21 June for the IAIS Global Seminar and Committee Meetings to discuss and exchange ideas on current international regulatory initiatives affecting the insurance industry, including Solvency II Europes latest insurance regulation that introduces tighter capital and corporate governance requirements for commercial re\/insurers. As the Cayman Islands robust and transparent legislative and regulatory platform is already in compliance with international standards, CIMA continues to analyze Solvency IIs potential impact on the captive insurance market before it considers adapting the new equivalency requirements. Continue reading