Cayman Islands Monetary Authority
The Cayman Islands insurance
sector is projected to grow steadily
in 2018 and 2019, and a number of
steps have been taken to engage
with new markets and keep the
domicile competitive, explains
Cindy Scotland of the Cayman
Islands Monetary Authority.
The Cayman Islands has long been established as an important
global financial services centre helping to ensure the flow of the
global economy and providing professional services to many
aspects of the industry such as fund management, the formation
of private and commercial trusts and for captive and international
Since 1979 when the Insurance Law was passed in the
Cayman Islands, the jurisdiction has become a major centre for
international insurance business. Today, it is the second largest
domicile for captives and remains the dominant jurisdiction worldwide
for healthcare captives with the highest number of licensed healthcare
The Cayman Islands captive insurance industry is composed mainly of
insurance risk emanating from North America. The next most important
geographical source is the Caribbean and Latin America, collectively. This
insurance industry is quite varied, with prominent risk types including
healthcare, workers’ compensation, property and general liability.
The international sector
The Cayman Islands insurance sector remains highly competitive with
steady growth projected to continue throughout 2018 and 2019. A total
of 33 new insurer licences were issued for the year ended 2017 and 21
new insurer licensees have been issued for the first nine months of 2018.
The total number of licensed insurance entities relating to the international
insurance sector was approximately 700 companies at September 30,
As the regulator of the world’s largest healthcare captives jurisdiction,
the Cayman Islands Monetary Authority (CIMA) has recognised that the
globalisation of insurance markets evolves at a rapid pace.
The US Affordable Care Act 2010 resulted in consolidation in the US
healthcare industry which has meant that captive insurance programmes
have been impacted and adapted as the healthcare systems merge.
Although this consolidation has resulted in a reduction in the number
of healthcare captives in the Cayman Islands, the captives surviving the
merger activity are generally better diversified and have stronger capital
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