The Cayman Islands is already well-established as an insurance jurisdiction, with 770 insurance licensees conducting business under the supervision of the Cayman Islands Monetary Authority (“CIMA”) as at 30 June 2021. What has been noteworthy of late is the increase in reinsurance undertakings domiciling in the Cayman Islands or enquiries about the establishment or re-domiciliation of various types of reinsurance structures in the Cayman Islands. Since Q2 2019, CIMA has approved 3 new licences, doubling the number of fully licensed Class D reinsurers with a physical presence on the Island (there had been 3 such entities until 2019). All the new class Ds reinsure longterm risk in the life/annuity space and all are subsidiaries of global institutional groups that have established in or re-domiciled into the Cayman Islands.
Three key factors are behind this growth:
>> Cayman’s effective regulatory framework;
>> Cayman as the capital markets jurisdiction of choice; and
>> Cayman’s expanding value proposition.
Cayman’s Effective Regulatory Framework
The Cayman Islands’ supervisory and legislative framework adopts international standards; this serves to promote confidence a mong investors and counterparties. As a jurisdiction, the Cayman Islands elected not to seek Solvency II equivalency, focussing instead on its closest market geographically – the Americas – which Cayman has historically served.1 The significant benefit from this election, not unlike the...
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