BRITISH VIRGIN ISLANDS


“The use of trust instruments by both high-net worth individuals and businesses is a growing global industry. The BVI has firmly established itself in this sector.”


Future growth: working together How can we ensure that the cross-selling concept grows and evolves? There are no simple answers, but the continued collaboration of the private and public sectors is vital.


The private sector’s primary responsibility is to make sure that the public sector is aware of our target markets. We now operate in a changing environment that is dependent on global tax cooperation, revolving around tax treaties and the signing of tax information exchange agreements (TIEAs). These are simply a sign of progress and are not something to be feared. However, we must work together to ensure that there is long-term benefit afforded to the BVI by signing such agreements. The future generations of the BVI may depend on it.


Life insurance products


The use of trust instruments by both high-net worth individuals and businesses is a growing global industry. The BVI has firmly established itself in this sector through the creation of innovative structures, such as Virgin Islands Special Trust Act (Vista) trusts. From a family estate planning and wealth management viewpoint, life insurance often forms a significant part of any overall structure, offering the beneficiaries a means of settling any estate taxes and other associated liabilities and expenses in the event of a death.


Vista trusts also offer a useful segue into the similarities to, and possible synergies with, life insurance products. One of the unique features of a Vista trust is its ability to disengage the trustees’ management responsibilities from the underlying businesses held by the trust. This enables the directors of a business held by a trust to continue to make the key decisions that allow the business to be maintained without unnecessary and unqualified involvement from a trustee. Unfortunately, what the trust may not be able to do is completely circumvent issues that arise as a result of the death of a shareholder.


However, were we to introduce a life insurance captive and death benefit reinsurance into the equation, we may be able to create a means of providing a fair and equitable payment to the deceased shareholder’s family that simultaneously results in the shares of the business transferring to the other shareholders in a cost-efficient manner.


This provides yet another great example of not only cross-selling, but actual product enhancement—and all under one small piece of sun- blessed sky in the Caribbean.


112 CICA | Forty years of captive leadership


One of the most precious, and sometimes under-utilised, resources we have in the BVI is the wealth of international experience of its practitioners. This does not relate solely to business experience, it relates to all manner of cultural and other qualities that have, sadly, begun to be overlooked. To me, the multicultural diversity of the BVI is one of its biggest strengths and will help form the basis of a prosperous future for younger generations in difficult economic times.


To borrow the words of John Donne, “No man is an island”. That said, some islands can become truly global. l


Simon Owen is managing director of Hyperion Risk Solutions Limited, insurance director at Folio Insurance Management Limited and past chairman of the BVI Association of Insurance Managers. He can be contacted at: simon@hyperion-risk.com


Viva CICA I think it’s hugely important to say some words of congratulations and appreciation to Dennis Harwick and all of the CICA team on their 40th anniversary.


The British Virgin Islands (BVI) has been sponsoring and exhibiting at CICA for the past 15 years and it’s fair to say that this strategy has formed an integral part of the domicile’s continuing success.


I’m honoured to call Dennis a friend and I sincerely look forward to sharing a drink or two with him at the event to discuss past events, the many anecdotes they have brought us and, not least, his plans for the CICA’s next 40 years.


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