Cayman Captive Insurance Sector Sees Record Growth in 2024

The Cayman Islands Monetary Authority (CIMA) has reported another record year for the captive insurance industry in 2024, issuing 40 new international insurer licenses—the highest in over a decade. The total includes one Class D open-market reinsurer. In the fourth quarter alone, CIMA issued 12 licenses—3 Class B(i)s, 8 Class B(iii)s, and 1 Class C. Additionally, three new insurance managers were licensed during the year.

The Class B license category under Cayman's insurance law encompasses a broad spectrum of captive insurance entities, including pure captives, group captives, association captives, rent-a-captives, and open-market insurers. Class B licenses are further segmented into three subclasses based on the percentage of related business conducted by the captive, as defined by CIMA.

• Class B(i): Captives writing 95 percent or more related business, requiring minimum capital of $100,000
• Class B(ii): Captives writing more than 50 percent related business, requiring minimum capital of $150,000
• Class B(iii): Captives writing 50 percent or less related business, requiring minimum capital of $200,000

Most single-parent captives fall within Class B(i), while Class B(iii) typically covers third-party reinsurers. These distinctions allow CIMA to set appropriate capital requirements based on the business profile of each entity.

Other license categories include Class C, which involves reinsurance entities using insurance-linked securities such as catastrophe bonds, sidecars, or collateralized reinsurance, and Class D, which applies to commercial reinsurers conducting reinsurance and other approved activities.

As of December 31, 2024, the Cayman Islands was home to 697 Class B, C, and D insurers, collectively writing $41 billion in premiums and holding $153 billion in total assets. Traditional single-parent captives licensed as Class B(i)s saw 13 new licenses issued in 2024, while third-party reinsurers licensed as Class B(iii)s experienced notable growth, with 24 new licenses issued.

Insurance Managers Association of Cayman Chair Kieran Mehigan said, "Cayman continues to attract new licensees due to the strong and effective legislation and professional infrastructure. Thank you to … CIMA, who has played a key role in this recent growth through their positive engagement and responsiveness. It is also encouraging to note the licensing of new insurance managers, who will undoubtedly help to attract additional licensees to the jurisdiction."

The momentum from 2024 is expected to carry into 2025, with further growth anticipated across various licensing categories. These trends will be highlighted at the Cayman International Reinsurance Companies Association ReConnect conference, set for April 10–11, 2025, at The Ritz-Carlton, Grand Cayman.