Why the Cayman Islands?
As overseas territories of the UK, with no direct taxation, the Islands are a thriving offshore financial centre. The country is ideally placed for international business and has a solid reputation in the financial industry for:
- Asset Protection Policy Holder Security
- Political and economic stability
- Professionalism Strong regulatory controls from the Caymans Islands Monetary
- Authority (CIMA) which supervises one of the largest Financial Centers worldwide in terms of Funds Business
- Banking, Insurance and Captives
- The Cayman Islands are FATCA and CRS compliant
- No restrictive investment diversification rules.
All policies will benefit from the Cayman Islands’ Segregated Portfolio Company regulations
A Segregated Portfolio Company (or SPC), is a company which, by law, practices horizontal and vertical segregation of its assets under administration.
Horizontal : Each policy is segregated from all other policies and no offset can be made between the policies. Therefore, each policy maintains its dedicated bank account. Therefore, a Cayman Insurance Company which has opted for the SPC statute carries Segregated Portfolios instead of policies although the word "policy" is still widely used for those Segregated Portfolios.
Vertical : Policy assets are strictly segregated from corporate assets which means de facto that in case of failure of the Insurance Company, each portfolio owner (policyholder) recovers his assets completely.
Each Segregated Portfolio is separately identified by a Board Resolution and registered with the Authorities. As a conclusion: a portfolio owner has no risk exposure on the Segregated Portfolio Company itself. In case of the insurer bankruptcy, the portfolio owner remains the sole legal owner of the assets held within his Segregated Portfolio
The Insurance Law (“IL”), the Monetary Authority Law, and the rules and statement of guidance relating to the insurance industry provide the framework by which the activities of the insurance market are regulated and supervised in the Cayman Islands.
TriCap Assurance SPC is subject to the Cayman Islands Monetary Authority’s regulation and on-going supervision. The Insurance Supervision Division aims to promote and maintain a sound financial system by monitoring the activities of licensees through an integrated risk-based supervisory approach that includes off-site and on-site monitoring.