CAPTIVE INSIGHT
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take into consideration statutory authority,
as well as an outline of the corporate
government framework overall, which
includes a detailed list of requirements.
Given Cayman’s high degree of success
in the area of insurance regulation, both
offshore and onshore jurisdictions are now
taking note. And, while Cayman often does
not garner the credit for this, throughout
the years an entire industry has evolved
around these concepts.
THE DYNAMIC ROLE
OF THE COMPANY’S
BOARD AS IT RELATES
TO CORPORATE
GOVERNANCE
When it comes to the proper management
of insurance providers, there is a great
deal of emphasis on the governance side.
Oftentimes, governing authorities can rely
on guidance from regulatory organisations.
As an example, with regard to Cayman
insurance regulation, one of the Cayman
Islands Monetary Authority’s (CIMA’s)
primary functions concerns the regulating
and the supervising of financial services, as
well as the monitoring of compliance with
money laundering regulations.
Without clear answers to key questions
though, it can lead to frustration – especially
with regard to guiding the company
towards its overall mission while continuing
to execute its fiduciary responsibilities.
And unfortunately, corporate governance
oftentimes comes to peoples’ attention
when things go wrong.
Case in point, in December 2001,
the collapse of Enron resulted in
thousands of people losing their
jobs, a sizeable pension