Cayman Islands law allows portfolio insurers
An amendment has been passed by the Legislative Assembly of the Cayman Islands in March that would allow a framework to be created to allow the registration of portfolio insurance companies, or PICs, within segregated portfolio company insurers (SPCs).
This type of structure offers four advantages over existing SPCs, said Rolston Anglin, the Minister for Financial Services, who presented the Insurance (Amendment) Bill 2013 to the Legislative Assembly.
A PIC is a separate legal entity, whereas a segregated portfolio of an SPC is not. This means the PIC may have greater ease in dealing with counterparties than a segregated portfolio of an SPC.
Unlike a segregated portfolio of an SPC, a PIC can contract with another cell of its controlling SPC, or with the SPC itself. As each PIC is a separate legal entity, there should be less risk of inadvertent co-mingling of assets.
A single PIC can be wound up without affecting its controlling SPC or other PICs; this is not possible within an SPC structure.
Minister Anglin said that PICs compete with incorporated cell companies (ICCs) that are offered in other captive domiciles. The PIC model is also more efficient and cost-effective than introducing standalone ICC legislation.
