Legal Framework

Cayman has worked with the IMF, OECD, FATF and others to create a stable, well-regulated legal financial system.

The Cayman Islands is a British Overseas Territory, governed by a democratically elected government. The Queen is represented by a Governor who has veto power.

Cayman has a sophisticated legal regime with respect for Rule of Law, due process, the right to personal privacy, superior corporate law and a highly efficient court system, where the final court of appeal is the Privy Council in London.  

Because the law is based on English common law, the structures are familiar, promoting legal and commercial certainty and security. For example, lenders can enforce security interests to protect creditors and investors.

The implementation of the new Insurance Law (2010) and its accompanying regulations has modernised the Cayman offering, ensuring that different areas of insurance – i.e. domestic insurance, captive insurance companies, insurance-linked securities and reinsurance companies - are all regulated based on the uniqueness of their structures and on their own individual risk profiles, increasing transparency and streamlining processes - what any commercially-minded, legitimate company wants.

The Incorporated Cell legislation is also now in effect, which will pave the way for new alternative risk management structures to domicile in the Cayman Islands. This legislation allows segregated portfolio companies (SPCs) to incorporate a single cell as a special Cayman exempted company called a portfolio insurance company (PICs). This structure allows for increased corporate governance, provides greater tax certainty as to the US tax status of the cell, and it is more readily migrated to a stand-alone captive, which works well for incubation purposes.

Relevant Cayman Laws

CIMA Laws and Regulations

A full list of the laws of the Cayman Islands can be found at the Cayman Islands Judicial and Legal Information

Cayman Captive Forum

Know How

Key Issues

Latest News
Mon-Sep-17-2018
New Look and Name for Cayman’s Insurance Association

MEDIA RELEASE. George Town, Grand Cayman, Sept. 17, 2018 The Insurance Managers Association of Cayman (IMAC), the nonprofit organisation representing Cayman’s captive and alternative risk management insurance industry, has announced the launch of its new b...

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