The latest insurance sector licensing statistics released by the Cayman Islands Monetary Authority (CIMA) have shown continued international interest in the captive insurance industry, which has maintained its extremely strong position.
According to data for the third quarter of 2023, CIMA issued eight new insurance company licenses between July and September, which was similar to the growth seen in both the first and second quarter of this year. Five Class B(i) licenses were issued during the third quarter, alongside three Class B(iii) and one new Portfolio Insurance Company.
On a year-to-date basis, the overall total of new international licenses issued by CIMA for 2023 stands at 24 for the first nine months. Considering the fourth quarter is traditionally a busy period for new licensing activity and the majority of Cayman insurance managers continue to report healthy new business pipelines, this activity points to another buoyant year for the jurisdiction, which has consistently added more than 30 new international insurance licenses in each of the last seven years.
With the addition of these new licensees, as at Q3 2023, there are 679 Class B, C and D insurance companies licensed in the Cayman Islands, writing approximately $57billion in premiums and with total assets of $137 billion. These numbers are consistent with Cayman’s position as the second largest captive insurance domicile globally and have increased significantly in the past two years, notably with premiums up from $23 billion and assets rising from $75 billion in 2021.
Licensing activity in 2023 has also included five new portfolio insurers and one Class D open market reinsurer.
North America continues to be the dominant risk location for the Cayman Islands international insurance industry, accounting for 90% 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% of licensees.
“Thanks, in part, to CIMA’s excellent 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,” said Lesley Thompson, chairperson of the Insurance Managers Association of Cayman IMAC. “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.”
Article from Captive International