The Cayman Islands Monetary Authority (CIMA) issued 12 new international insurer licenses in the second quarter of this year. Between April and May three B(i)s, one B(ii), six B(iii)s plus a class C and a class D reinsurer received a license. In addition, two new insurance managers were also licensed.
Together with the 12 new licensees issued in the first quarter of 2024, a total of 24 new international insurance licenses have been issued so far this year. This represents a 50% increase over the same period in 2023.
With the addition of these new licensees there are now 700 Class B, C and D insurance companies licensed in Cayman, with approximately $40 billion in premiums written and $151 billion in total assets. These figures do not include individual cells.
The Insurance Managers Association of Cayman (IMAC) said while Cayman anticipated increased licensing activity in 2024, the number of new licenses in the first half of 2024 had been very encouraging and represented a significant increase in comparison to 2023. This trend is also a positive indicator for the rest of the year.
Kieran Mehigan, chair of IMAC, said in a press release that the international commercial insurance, reinsurance and captive industry in Cayman continues to thrive.
“We are seeing growth across all types of captives as insureds face a hard market for certain lines of coverage, encounter capacity shortages, and deal with coverage restrictions. The Life and Annuity reinsurance sector is also growing, driven by annuity providers seeking enhanced capital efficiency,” he said.
“This growth was especially evident in Q2, given the variety of licensees and license classes. It’s very encouraging to see single-parent and group captives thriving alongside new commercial reinsurers. These developments are contributing to the continued growth of Cayman as a prime jurisdiction for the international insurance industry, underscoring that Cayman remains an increasingly attractive place to do business,” Mehigan added.
IMAC encourages anyone who would like to learn more about the Cayman Islands captive insurance industry to attend the Cayman Captive Forum at the Ritz-Carlton, Grand Cayman from 3 -5 Dec. 2024.
Further information can be found at https://www.imac.ky/
