The Cayman International Reinsurance Companies Association (CIRCA) has supported the findings of a new report by the Society of Actuaries (SOA), which underscores the Cayman Islands’ growing role as an international reinsurance jurisdiction supporting cross-border insurance markets.
Faramarz Romer, Chairman of CIRCA, said, “This report provides independent confirmation that the Cayman Islands is a well-regulated international reinsurance jurisdiction, supported by a robust regulatory framework and a risk-based supervisory approach focused on policyholder protection and ongoing regulatory oversight by the Cayman Islands Monetary Authority (CIMA).
“The Cayman Islands is well positioned to provide the capacity and expertise needed to support the needs of global insurers and reinsurers.”
The report highlighted the value of jurisdictions such as the Cayman Islands to the global reinsurance market. It noted that international reinsurance can be vital in helping U.S. insurers increase competitiveness, manage risk more actively, enter new markets, access international capital, offer innovative products, and manage their balance sheets strategically.
The SOA report also underlined the Cayman Islands’ regulatory and capital framework, where reinsurers operate under risk-based capital standards aligned with internationally recognised principles, including the Insurance Core Principles (ICPs) of the International Association of Insurance Supervisors and overseen by CIMA.
The Cayman Islands’ reserving framework is identified as a key advantage for multinational insurers, with reserves established using internationally recognised accounting standards, often aligned with U.S. GAAP or statutory principles.
This framework supports consistent and efficient financial reporting across jurisdictions, streamlines new transactions, improves comparability and transparency for multinational insurance groups, and enhances stability through alignment of product design and reporting practices.
The report also noted that Cayman Islands’ reinsurers provide full collateralisation for U.S. statutory reserves, often with additional over-collateralisation, offering a high level of security for U.S. insurers and policyholders.
It further emphasised the important role of Cayman Islands reinsurers in supporting the U.S. retirement market, highlighting international reinsurance as a key tool to help insurers manage capital and risk while addressing long-term retirement needs.
In addition, the SOA report documented the Cayman Islands’ extensive international cooperation, with CIMA maintaining over 70 regulatory agreements, including with U.S. regulators, and routinely engaging in transaction-level collaboration.
