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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance explores the challenges presented by today's business and economic upheaval, as well as the hardening insurance market, and what it means for the captive insurance industry.

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Captive Industry in Cayman Impacted by Healthcare Consolidation

Cayman Islands Beach Ocean
May 15, 2015

The ongoing consolidation of healthcare systems in the United States as a result of the Affordable Care Act (ACA) is leading to consolidation among medical captives in Cayman, Kieran O'Mahony, chairman of the Insurance Managers Association of Cayman (IMAC), said during an interview with A.M. BestTV at the recent RIMS 2015 Annual Conference & Exhibition in New Orleans.

Cayman is the largest healthcare- and medical malpractice-related captive domicile. They currently represent approximately 35 to 40 percent of all captives domiciled in the Cayman Islands, Mr. O'Mahony said. The total number of captives domiciled in Cayman was 759 as of December 31, 2014, with pure captives representing 415 of these and a further 139 being segregated portfolio companies, according to statistics IMAC released in February.

While the number of healthcare captives will be reduced over the next 2 to 3 years, the ones that remain will be larger, more complex, and more vibrant, with greater uses, he said.

On a positive note about captive growth in the Cayman Islands, Mr. O'Mahony commented during the interview, “We're [Cayman] seeing a lot of interest and actual formations coming from the SMEs—small and medium enterprise area.”

He suggested this is a largely untapped source for future captive development.

 View the entire A.M. BestTV interview with Mr. O’Mahony.

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