Thirteen new (re)insurance company licences have been issued in the first quarter of 2019 by the Cayman Islands Monetary Authority (CIMA), and another three since then, setting the jurisdiction’s international insurance industry up for another banner year of growth.

In addition, four portfolio insurance companies (PICs) have been registered and five new reinsurer licenses applications have been approved in principle by CIMA so far this year.

Total premiums recorded for the quarter are US$15.4 billion and total assets came in at US$68.95 billion, each area showing consistent increases since year-end 2018.

Growth was particularly noted in the area of group captives, digital assets and reinsurance, underlining Cayman’s position at the forefront of evolution and change.

Erin Brosnihan, chairperson of the Insurance Managers Association of Cayman welcomed the continued industry growth.

“What we are seeing is positive”, she said. “We are confident of two distinct trends. First, the largest and most complex captives are most definitely Cayman’s area of speciality, and second, we are witnessing an upsurge in new risk areas, showcasing the expertise of our managers, service providers and our regulator.”

Increasingly, businesses are turning to captives as a viable alternative to insurance in the commercial market, due in part to the potential for significant dividend payments that would normally have been paid as premiums to commercial insurers. Businesses of all sizes and across industries, from non-profit organisations to food manufacturers are benefiting from captives, through the increased accessibility of the group captive model. The Cayman Islands remains one of the world’s leading group captive jurisdictions with 120 group captives totalling $3,013,772,649 in premiums from over 5,000 shareholder-insureds.

Although there was an overall drop in the number of captives, this was anticipated, with Ms
Brosnihan reasoning: “With some historical market softening, though possibly facing some hardening of those same rates, some captives have come to the end of their natural life cycles. Mergers and consolidations continue, particularly in the healthcare space, where the Cayman Islands has dominated for decades. As a mature industry, it is only natural that some captives will run their course. Based on our Q1 numbers, it is clear that growth and evolution continues apace with new formations.”

Members of the Cayman Islands’ international insurance industry, including Mr. Ruwan Jayasekera, Head of Insurance Supervision at the Cayman Islands Monetary Authority, will be attending RIMS 2019 in Boston April 28 – May 2 to discuss with conference-goers the many benefits of a Cayman Islands-domiciled captive, including the expertise, commitment and appropriate regulatory model built over a 50-year history.

For more information on how a Cayman captive can benefit your business, visit CaymanIntInsurance.ky.