(CNS): The number of premiums written and total assets managed by insurance firms licensed in the Cayman Islands doubled in the fourth quarter of 2023, standing at $58 billion and $130 billion, respectively. Insurance sector licensing statistics released by the Cayman Islands Monetary Authority (CIMA) show that last year, the jurisdiction issued 40 new international insurance licences — the largest number issued in a single year for more than a decade — and there are twelve additional licence applications that remain under review.
Cayman’s offshore insurance industry is going through a period of significant growth, according to industry experts, who expect 2024 to be another great year.
“Despite a very competitive international market, the Cayman Islands is increasingly the jurisdiction of choice for insurance companies thanks to our highly developed captive industry, transparency, integrity, professional yet flexible risk-based regulation, and accessible business-focused regulators,” said Kieran Mehigan, chairperson of the Insurance Managers Association of Cayman (IMAC). “The conditions that enabled record-setting new business in 2023 have laid the foundation for a truly exceptional year for the industry in 2024.”
Between October and December 2023, CIMA issued fifteen new international insurer licences: eight B(i)s, six B(iii)s and one Class C, as well as two new portfolio insurance companies. Licences were also issued to eight portfolio insurers and one class D open market reinsurer. Traditional single-parent captives licensed as B(i) licensees from various industries have also increased in 2023. The B(iii) licence class, majority third-party business, has seen a greater increase in numbers as the jurisdiction attracts new reinsurers, particularly life reinsurance companies.
There are now 683 Class B, C and D insurance companies licensed in Cayman, the second-highest number of such companies here since 2017.
The Cayman Islands is the second-largest domicile in the world for captives and a dominant jurisdiction for healthcare captives, group captives, catastrophe bonds and international reinsurance. Mehigan credited the regulator with helping to increase business for the industry throughout this year, saying that it had been “key in supporting this solid growth through their positive engagement, responsiveness, and clarity throughout the licensing process”.
