Captive Insurance

• Less restrictive insurance regulation
• Freedom from exchange control
• Excellent telephone, fax and internet communications
• Modern insurance laws
• Abundance of banking, legal and accounting expertise together with high ethical standards

• To minimize costs by the elimination of a large percentage of traditional insurance company overhead.
• To retain profits that would otherwise have to be paid to commercial insurers in the form of premiums in excess of the amounts repaid to cover losses.
• To have freedom over investment into which the premiums of the captive may be made.
• To reduce risk by selecting only quality insureds known to each other (as in the case of some medical malpractice association captives).
• To insure risks which would otherwise be uninsurable or cost prohibitive and to design custom policies.
• Access to the re-insurance market.
• The reduction of Government regulations and restrictions by seeking out a favorable jurisdiction for the registration of the company.
• The reduction of taxes by domiciling the company in a low tax jurisdiction. Cash flow planning as the captive has the use and benefit of the premiums.
• Timing of premium can be determined to suit the parent's cash flow requirements.

• Insurance License Application - US$2,500 as long as a comprehensive Business Plan is prepared by the client and the application is fairly straightforward. Cost will include an initial meeting with the clients at the Cayman Islands Monetary Authority offices.
• Insurance Management Services - US$10,000 minimum per annum. Annual insurance management fees are normally negotiated on the basis of a fixed minimum fee plus a time spent fee at an average IMS staff rate of US$200 per hour.
• Cost of Formation of Insurance Company - US$2,190 including Government fees, tax exemption certificate and disbursements using standard insurance Memorandum and Articles of Association (there is an additional legal fee disbursement if local attorneys are required to prepare a special set of Memorandum and Articles to meet the needs of the particular type of insurance business).
• Annual Corporate fees - (US$800 - US$3000) Level depends on whether IMS is providing local Directors and Secretary or combination thereof. It should be noted the Cayman Islands Monetary Authority require some representation on the Board by the clients or overseas insurance professionals involved with the new company.