CAPTIVE INSIGHT
Procedures for the reconciling of
stakeholders’ conflicting interests, in
accordance with their roles, duties, and
privileges;
Policies and procedures for proper
supervision and controls in order to serve
as a system of checks and balances; and
Procedures for the in- and out-flow of
information.
Because corporate governance works
to provide the underlying system for a
company’s attainment of its objectives,
such governance can encompass nearly
every sphere of its management, such as
corporate disclosure, internal controls,
action plans, and measurement of
performance.
THE ROLE OF
CORPORATE
GOVERNANCE –
AND WHERE IT
IS SETTING THE
STANDARD
In its most basic sense, corporate
governance refers to the framework of
rules and practices by which a board of
directors ensures a number of key aspects
of a company – particularly as it relates to
balancing the interests of the business’s
numerous stakeholders.
Such stakeholders can include, but are
certainly not limited only to, the company’s
management, as well as its shareholders,
financiers, suppliers, customers, and even
the community at large. The government
can also oftentimes be one of a business’s
largest stakeholders.
So, governance – along with the assurance
that the company is moving forward ethically
and within industry regulations – can be key.
Typically, the primary factors that pertain to
a company’s overall objectives will include
the following:
Accountability;
Fairness; and
Transparency
In many ways, the duties of corporate
governance are deemed as an “extension”
of a company’s board of directors. With that
in mind, there are a number of components
that can make up the corporate governance
overall framework, such as:
Both implicit and explicit contracts between
the business and its stakeholders for
distribution of responsibilities and rights, as
well as rewards;
WHY CAYMAN LEADS
THE WAY IN INSURANCE
REGULATION
For nearly four decades, Cayman has
essentially set the standard as it relates to
corporate governance, given its immensely
high emphasis on such practices. This
includes the regulation of the Board of
Directors and Insurance Managers of
Cayman Islands captive insurance and
investment-related entities.
For instance, the Cayman Islands Monetary
Authority (CIMA) sets forth a Statement
of Guidance, which clearly lays out the
responsibilities of insurance managers in
the areas of:
Advice provided directly to clients;
Relations with client insurers; and
Relations with CIMA itself
Likewise, there are specific corporate
governance rules for insurers too, which