The Cayman Islands Monetary Authority (CIMA) has released its licensing statistics for the second quarter of 2024, indicating a substantial increase in new international insurer licenses.
Between April and June, CIMA issued 12 new licenses, including three B(i), one B(ii), six B(iii), one class C, and one class D reinsurer licenses. Additionally, two new insurance managers were licensed.
This brings the total number of new international insurance licenses issued in 2024 to 24, marking a 50% increase compared to the same period in 2023. As a result, there are now 700 Class B, C, and D insurance companies licensed in the Cayman Islands, with approximately $40 billion in premiums written and $151 billion in total assets. These figures exclude individual cells.
The regulatory body explained that the growth in licensing activity in the first half of 2024 exceeded expectations, suggesting a strong outlook for the remainder of the year.
Kieran Mehigan (pictured above), chair of the Insurance Managers Association of Cayman (IMAC), noted the industry's continued expansion, particularly in response to a challenging market environment for certain lines of coverage.
“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. 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,” Mehigan said.
Mehigan emphasized that these developments contribute to Cayman's reputation as a leading jurisdiction for international insurance, underscoring its attractiveness for business.
IMAC also encouraged those interested in the Cayman Islands' captive insurance industry to attend the Cayman Captive Forum, scheduled for December 3 to 5, 2024, at the Ritz-Carlton, Grand Cayman.
IMAC serves as the representative body for the international insurance industry in the Cayman Islands, working closely with the government and regulators to foster innovation and maintain the jurisdiction's competitive edge. The Cayman Islands is recognized as the second largest domicile for captives globally and is a key market for healthcare captives, group captives, catastrophe bonds, and international reinsurance.
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