Cayman re/insurance grows with 24 new licenses

Cayman re/insurance grows with 24 new licenses | Insurance Business Australia

Insurance News

Cayman re/insurance grows with 24 new licenses

Regulator sees a surge in licensing

Insurance News

By
Kenneth Araullo

The Cayman Islands Monetary Authority (CIMA) issued 12 new international insurer licenses in the second quarter of 2024, according to the Insurance Managers Association of Cayman (IMAC).

These new licenses, combined with the 12 issued in the first quarter, bring the total number of international insurer licenses issued in 2024 to 24. This figure represents a 50% increase compared to the same period in 2023, according to a statement from IMAC.

The latest round of licenses includes three B(i) licenses, one B(ii) license, six B(iii) licenses, as well as one Class C and one Class D reinsurer.

Currently, there are 700 Class B, C, and D insurance companies licensed in the Cayman Islands, with total premiums amounting to $40.39 billion and assets totaling $151.93 billion, according to CIMA statistics. These figures do not include individual cells.

While higher licensing activity was anticipated in 2024, the trend is viewed as a positive indicator for the remainder of the year, IMAC said.

Kieran Mehigan (pictured above), chair of IMAC, remarked on the ongoing expansion of the international insurance, reinsurance, and captive industry in the Cayman Islands, noting widespread growth across various sectors.

The increase in captive formations is being driven by insureds encountering a hard market for certain lines of coverage, capacity shortages, and coverage restrictions, according to Mehigan.

Additionally, the life and annuity reinsurance sector is expanding as annuity providers seek to improve capital efficiency.

In related news, Oceanview Holdings Ltd. announced in June that it had launched a subsidiary in the Cayman Islands as part of a broader global expansion strategy.

Oceanview Secure Reinsurance Ltd, the new Cayman Islands reinsurer, was licensed as a Class D company by CIMA.

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