In 2020 the Cayman Islands formed 36 new insurance companies, making it the largest annual increase since 2017.
Accompanying the new licenses were 12 new portfolio insurance company approvals and a new insurance manager.
Although Q1 and Q2 2020 figures were steady due to continued consolidation in the US Healthcare space, there was a sharp increase in Q3 and Q4 in new formation numbers.
Both corporate and insurance company clients have continued to establish alternative risk transfer structures to better manage the continued price and coverage volatility being experienced in the commercial marketplace.
2020 saw further increases in the number of Cayman reinsurance captive/company formations, a trend that is expected to continue into 2021 and beyond. Cayman finished the year with a total of 630 B licenses, 23 C license and 5 D licenses as well as 36 portfolio insurance company licenses.
Colin Robinson, The Insurance Managers Association Cayman Chair, commented: “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.
“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.”