1. External Insurance Market Opportunities
2017
The Nassau Conference

2. Long Cay Captive Management
Bahamian-domiciled licensed insurance management company authorized under the External Insurance Act
Joseph Ziolkowski, CPCU, AU-M, ACI
Long Cay’s Mission:
“To provide objective insight and value-enhancing, innovative risk financing solutions delivered with technical expertise and an intense focus on client service”

3. Agenda External Insurance Market Overview
Market Penetration and Growth
Drivers of Domicile Selection
Service Providers
Who Should We Target?

4. Insurance Market Penetration
USA: 8.8%
LatAm Region: 3.09%
Chile: 4.74%
Brazil: 3.9%
Colombia: 2.64
Mexico: 2.21
Emerging Asia: 2.0
Market Penetration =
Gross Written Premium
GDP
1% Insurance Penetration Increase in:
COL = USD bn in new premium
CHL = USD 2.47 bn in new premium
MEX = USD 10.4 bn in new premium

5. Non-Life Premium Penetration

6. Life Premium Penetration

7. Emerging Markets Spur Growth
NON-LIFE PREMIUM GROWTH
Year
Global
LatAm
Emerging Asia
2016
2.4%
5.3%
7.8%
2017
2.2%
5.7%
8.0%
2018
3.0%
6.7%
9.0%
Commodity Prices;
Strengthening Economic Activity

8. Emerging Markets Spur Growth
LIFE PREMIUM GROWTH
Year
Global
Emerging Markets (LatAm/Asia)
2016
5.4%
20.1%
2017
4.8%
14.9%
2018
4.2%
10.9%
Growing Population
Urbanization;
Rising Middle Class;
Strengthening Economic Activity

9. Key Drivers of Domicile Selection
Marketing, Marketing, Marketing
Reputation
Regulatory Environment
Ease of Establishment
Service Support Infrastructure
Geographic Location
Flexibility of Regulations
Accessibility
Ease of Communication
Taxation
Transparency

10. 2016 Captive Domicile Rankings

11. Outsourced Services for Insurers
Insurance Management
Financial Accounting
Custodial Services
Asset Management
Compliance Services
Financial Audit
Actuarial Services
Local Legal Services/Registered Agent

12. Non-Life Business = Commercial Enterprises
Who are We Targeting?
Non-Life Business = Commercial Enterprises
Benefit from positive loss experience
Improve efficiencies of a multinational insurance program
In need of innovative risk transfer solutions
In need of flexibility and an expanded scope of coverage
Reflect improving loss control efforts in advance of market credit
Improve tax efficiencies
Liquid

13. Who are We Targeting? Life Business = HNWs
Bahamas has the infrastructure to accommodate HNW life insurance planning!
6 licensed long-term insurers
Recent Demand:
Brazil
Asia
Canada

14. Formation & Insurance Management Services
Finance
Insurance
Compliance
Risk Consulting
Underwriting
Actuarial feasibility analysis
Insurance program design
Retain local legal counsel
Resident Representative
Application & business plan
Financial account opening
Incorporation & Formation
Financial reporting
Annual budget
Financial forecasts
Annual audit
Cash management
Tax matters
Regulatory reporting
Investment strategy
(Re)Insurance
Renewal support
Underwriting
Actuarial support
Policy administration
Reinsurance agreements
Claims management
Reinsurance recovery
Structured risk transfer
Compliance officer
Compliance reporting
AML/CFT control
Regulatory liaison
Legislative guidance
Corporate governance
Loss forecasting
Reserve analysis
Premium allocation
Alternative risk transfer
Enterprise risk management
Risk control implementation
Retention analysis
Review of commercial ins.

15. Thank You
Joseph Ziolkowski Principal Long Cay Captive Management, Ltd Lyford Manor, Western Rd, Lyford Cay Nassau, N.P. The Bahamas