Cayman Q3 statistics have ‘shown continued international interest in the captive insurance industry, which has maintained its strong position,’ according to The Insurance Managers Association of Cayman (IMAC).
The comments were included in its latest insurance sector licensing statistics released by the Cayman Islands Monetary Authority (CIMA).
According to data for Q3 2023, CIMA issued eight new insurance company licenses between July and September, which kept pace with the growth seen in both the first and second quarter of this year.
Five class B(i) licenses were issued during Q3, alongside three class B(iii) and one new portfolio insurance company.
With the addition of these new licensees, as of Q3 2023, there are 679 class B, C and D insurance companies licensed in the Cayman Islands, writing approximately US$57billion in premiums and with total assets of US$137 billion.
CIMA says: “These numbers are consistent with Cayman’s position as the second largest captive insurance domicile globally and have increased in the past two years, notably with premiums up from US$23 billion and assets rising from US$75 billion in 2021.”
Licensing activity in 2023 has also included five new portfolio insurers and one class D open market reinsurer. Cayman’s portfolio insurance company legislation allows insurance companies established as segregated portfolio companies to incorporate cells as portfolio insurance companies. This has been a popular way for industry participants to enhance risk management.
The reinsurance sector has also developed into part of Cayman’s international insurance business in recent years — there are currently eight class D licensed reinsurance companies, compared to three in 2017.
North America continues to be the dominant risk location for the Cayman Islands international insurance industry, accounting for 90 per cent of the total in Q3 2023.
Medical malpractice liability, workers compensation, general liability and property remain the most significant lines of business, together making up almost 70 per cent of licensees.
Lesley Thompson, chairperson of IMAC, comments: "Thanks, in part, to CIMA’s proportional regulatory approach, the Cayman Islands insurance industry is experiencing continued growth across sectors, with established companies expanding their portfolios and group captives welcoming new members.”
“These healthy third quarter statistics signal the likelihood of a strong finish to the year and we expect to see increases in license applications and double-digit license issuances in Q4."
IMAC encourages anyone who would like to learn more about Cayman Islands captives to register for this year’s Cayman Captive Forum being held at the Ritz Carlton from 28 to 30 November.
