Download Ann Nealon CEO

Cayman Islands
International Insurance in the
Licence Applications –
Licencing a Captive in the
Cayman Islands
Presented by Dwight Merren
Deputy Head of Insurance - Captives
1
Cayman Islands
International Insurance in the
First things first!
2
Cayman Islands
International Insurance in the
• Reserve a name: Once a name has been
determined, check availability with CIMA; if
available, CIMA will reserve it
• Where possible, we recommend an initial meeting
with CIMA, to meet the principals and discuss the
business plan
3
•
Cayman Islands
International Insurance in the
The Application
• Obtain Application Form from CIMA’s website:
www.cimoney.com.ky
• State whether licence will be “Restricted” or
“Unrestricted”
• State date of commencing business
4
Cayman Islands
International Insurance in the
• State whether business will be: 1)General (Minimum
Capital US$120,000 ), 2) Long Term (US$240,000)
or 3) Both (US$360,000)
• State place of business address and Registered Office
address
5
Cayman Islands
International Insurance in the
Due Diligence
• In respect of individuals who are Directors, Officers
or Shareholders
• Provide:
A) Personal Questionnaire – original, duly
completed, signed and dated by applicant
B) Sworn Affidavit – original, duly completed,
signed and dated by applicant and notarized
6
Cayman Islands
International Insurance in the
C) 3 References: must be signed and dated by writer
on letterhead or with relevant contact info:
•
1) 1 Bank Ref: – disclose that relationship is
satisfactory and for at least 2 years;
•
2) 2 Character Refs: must be independent,
disclose nature of relationship and length of
relationship (minimum of 3 years)
• Originals please!
7
Cayman Islands
International Insurance in the
• If Shareholder is a Corporation:
1) Provide last 2 years (most recent) financial
statements (preferably audited)
• If Shareholder is a Person:
1) In addition to due diligence noted above, provide a
personal net worth statement certified and dated by
the applicant, and notarised
8
Cayman Islands
International Insurance in the
• If Shareholder is a Trust
• Provide certified copy of the Trust Deed
• Due Diligence on the Settlor and the Trustee
9
Cayman Islands
International Insurance in the
• Other:
1) Where possible, it is useful to provide CVs or bios
to supplement question 10 on the PQ, where it asks
for present and past 10 years occupation(s)
2) Provide name of MLRO and Compliance Officer
and a brief bio for each.
10
Cayman Islands
International Insurance in the
Incorporation and other
Documentation
• Draft Memorandum and Articles of Association
• Financial Projections
operations
covering
first
3
years
of
• Actuarial Study
• Acceptance letter from Auditor
11
Cayman Islands
International Insurance in the
Business Plan
• Shareholder Information (if a Trust is part of the
ownership structure, provide copy of Trust Deed and
due diligence on Settlor and Trustee)
• Background and Rationale
• Coverage and Exposures (include schematic where
possible)
• Type of Policy (claims made or occurrence)
• Fronting Arrangements
• Reinsurance Arrangements
• Risk Management Plan/Framework (New)
12
Cayman Islands
International Insurance in the
•
•
•
•
•
•
•
•
List of Service Providers
Loss Control
TPA/Claims Handling
Actuary (summary of actuarial review)
Capitalization
Dividend Policy
Investment Policy
Financial Projections – 3 Years
13
Cayman Islands
International Insurance in the
• LOC arrangements, if any
• Anticipated Loans, if any
• Year-end
14
Cayman Islands
International Insurance in the
How Process works at CIMA
• Turnaround time: normally 3 - 4 weeks depending on
info provided, questions and answers between CIMA
and Manager
• Initial review is conducted and approval
incorporate is issued shortly thereafter
to
15
Cayman Islands
International Insurance in the
• Prepare a paper (submission) setting out details of
application
• Submission is prepared by an Analyst and reviewed
by Deputy or Head
• Submission will recommend, or otherwise, why we
(the Insurance Division) believe the licence should be
approved
16
Cayman Islands
International Insurance in the
• Submission is then sent to the MD’s office for
inclusion on the agenda, for review and discussion by
CIMA’s Management Committee (“MC”)
• MC is made up of MD and/or DMD and Regulatory
Division Heads
• MC meets every Tues at 9:00 AM (Submissions must
be sent in by 4:30 pm on the prior Wed)
17
Cayman Islands
International Insurance in the
• Submission is presented to MC by Head; if Head is
not available then Deputy will attend and present in
his stead
• Approval in Principle is granted, or sometimes
otherwise 
18
Cayman Islands
International Insurance in the
Objectives of the Insurance Division
• To review and understand the business conducted by
the applicant
• To ensure a consistent and systematic approach to
supervision
• To ensure that the applicant is in compliance
• To detect any early signs of any potential problems
with a view to remedying in advance
19
Cayman Islands
International Insurance in the
Finally
• Utilize CIMA’s website for information:
www.cimoney.com.ky
• Don’t forget to enclose the Application fee CI$8,500!
20
Cayman Islands
International Insurance in the
Questions?
21