The Cayman Islands Monetary Authority (CIMA) has revealed it welcomed 36 new insurance formations in 2020, marking the largest annual increase since 2017.
CIMA says both corporate and insurance company clients continue to establish alternative risk transfer structures to better manage the continued price and coverage volatility being experienced in the commercial marketplace.
Figures showed there were 31 Class B, 3 Class C, 2 Class D licenses, and 12 new portfolio insurance company (PIC) approvals as well as a new insurance manager approved in 2020.
At the end of 2020, there were a total of 652 Class B, C and D insurance companies and 23 insurance managers. Representing the two main categories are 281 pure captives and 125 group captives companies
Over 21 per cent of the total Class B, C, and D insurance companies were formed as segregated portfolio companies, with over 600 segregated portfolios.
Although Q1 and Q2 figures were somewhat flat owing to continued consolidation in the US healthcare space, Cayman witnessed a sharp increase in Q3 and Q4 in new formation numbers.
Medical malpractice liability continued to be the largest primary line of business with approximately 24 per cent companies (re)insuring medical malpractice, and workers’ compensation the second largest with almost 22 per cent of companies assuming this risk.
In the same year, CIMA also noted that there were 30 licence closures.
Commenting on the stats, Colin Robinson, Insurance Managers Association Cayman (IMAC) chair, says: “We are extremely encouraged by the industry's 2020 figures which recorded a three-year high. This increase demonstrates the industry's resilience during difficult times and the Cayman Islands strength as a leading jurisdiction.”
He adds: “We expect that 2021 will continue to be another excellent year for growth as an industry and we look forward to continuing to meet the growing needs of our present and future captive owners.”
