Cayman Islands re/insurance sector sees growth

Cayman Islands re/insurance sector sees growth | Insurance Business Canada

Reinsurance

Cayman Islands re/insurance sector sees growth

Five new insurer licenses issued, marking 29 for the year

Reinsurance

By
Kenneth Araullo

The Cayman Islands Monetary Authority (CIMA) has reported its licensing statistics for the third quarter of 2024, showing continued growth in the re/insurance sector.

Between July and September, CIMA issued five new international insurer licenses, including three B(i)s and two B(iii)s. This reflects sustained momentum in the Cayman Islands’ insurance industry.

In total, 29 new international insurance licenses have been issued this year, combining the five from the third quarter with 24 from the first half of 2024. This marks a significant increase compared to the same period in 2023.

The Cayman Islands now hosts 696 Class B, C, and D insurance companies, with approximately $42 billion in premiums written and $154 billion in total assets, excluding individual cells.

As the industry enters the fourth quarter, typically a peak period for new license applications, insurance managers in Cayman report a strong pipeline of new business. CIMA is currently processing several active applications, indicating potential for further growth as the year concludes.

Kieran Mehigan (pictured above), chair of the Insurance Managers Association of Cayman (IMAC), noted that the international commercial insurance, reinsurance, and captive industry in Cayman continues to thrive.

“Our jurisdiction’s success is largely due to the Cayman Islands’ favorable regulatory environment, robust legal framework, and tax-neutral status, which continue to attract global firms seeking cost-effective and efficient structures,” Mehigan said.

Mehigan also highlighted growth across all captive types, particularly during the second quarter, with a diverse range of new licensees. The expansion of single-parent and group captives, along with new commercial reinsurers, is contributing to Cayman’s increasing prominence as a leading insurance jurisdiction.

IMAC represents the international insurance industry in the Cayman Islands and works closely with the government and regulators to promote the jurisdiction’s competitiveness. The Cayman Islands is the second-largest domicile for captives globally and a key market for healthcare captives, group captives, catastrophe bonds, and international reinsurance.

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