Cayman Islands Sees Strong Growth in Insurance Sector for Q3 2024

The Cayman Islands Monetary Authority (CIMA) has reported a steady rise in its insurance sector, with five new international insurer licenses being issued in Q3 2024. This includes three Class B(i) and two Class B(iii) licenses. 

The Class B license category covers a wide range of captive insurance entities, including pure captives, group captives, and rent-a-captives, among others. These are segmented into three subclasses: Class B(i) for captives writing 95 percent or more related business, Class B(ii) for those writing more than 50 percent, and Class B(iii) for those writing 50 percent or less. Each subclass has specific capital requirements, ranging from $100,000 for Class B(i) captives to $200,000 for Class B(iii).  

With the addition of these licenses, the total number of new international insurers for 2024 has reached 29, a notable increase compared to the same period in 2023. The Cayman Islands now hosts 696 Class B, C, and D insurers, with approximately $42 billion in premiums written and $154 billion in total assets, excluding individual cells. 

Class C licenses cover reinsurance entities utilizing insurance-linked securities such as catastrophe bonds, and Class D licenses are designated for commercial reinsurers. 

As the year progresses, insurance managers in Cayman have reported a strong pipeline of new business. CIMA is currently processing several applications, hinting at further growth in the sector as the fourth quarter—a historically peak period for new licenses—approaches. 

Kieran Mehigan, chair of the Insurance Managers Association of Cayman (IMAC), said, "The international commercial insurance, reinsurance, and captive industry in Cayman is thriving. 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." 

He continued, "We're witnessing growth across all captive types, especially in Q2, with a diverse range of new licensees and classes. It's encouraging to see single-parent and group captives continuing to expand alongside new commercial reinsurers." 

IMAC encourages those interested in the Cayman Islands captive insurance industry to attend the Cayman Captive Forum at The Ritz-Carlton, Grand Cayman, from December 3 to 5, 2024. More details are available on IMAC's website.