When Insurers Take Your Money to the Cayman Islands As if insurance wasn’t already complicated or expensive enough, now we find out where some of that money is really going. Major insurers have been quietly moving billions in policyholder liabilities offshore to places like the Cayman Islands. Why? Because those places let them hold less capital against possible losses. Less cushion means higher profits for them, and more risk for you. The pitch is always the same: “We’re improving returns.” Translation: “We’ve found a regulatory loophole.” It’s financial engineering that looks smart, until it doesn’t. Regulators are only now trying to catch up, reviewing hundreds of deals that may have stripped away the safety nets meant to protect policyholders. We’ve seen this movie before. When the music stops, we find out which balance sheets were hollowed out in the name of efficiency. So if you’re chasing the cheapest policy, understand what you’re really buying. You might save a few dollars today, at your own risk. https://lnkd.in/ewyJNS4X