The Cayman islands insurance and reinsurance industry has seen a “buoyant” start to 2017, with 8 new insurer licenses issued in the first quarter.
Linda Haddleton, Chair of IMAC, a non-profit association run by Cayman Islands insurance managers, said the island has seen continued success with hosting captives and ILS structures – standing up to increasing pressure from competing jurisdictions now vying to attract alternative finance structures.
Total premiums written for the sector stand at $14.6 billion per year – with total assets held at $60 billion; figures which Haddleton said are “enhanced by a number of additional license applications planned or underway.
“This is rewarding news for the jurisdiction, demonstrating the confidence of markets in the regulatory framework and the advanced infrastructure of the Cayman Islands,” she added.
The IMAC Chair highlighted the islands long and successful history of hosting Class C ILS structures, commenting that the jurisdiction “has much interest in seeing further innovation in this field and wider use of ILS. This represents another area of opportunity for new Cayman Islands licensed Insurers.”
“There is no doubt that trade and commerce becomes more global every day, bringing many challenges but also opportunities. The more broad your experience, the more innovative you tend to become. Exposure to wide-ranging financial structures allows for lateral thinking when it comes to innovative structuring and development of appropriate regulations.
“Given the range of well-established sectors in our financial services industry, the Cayman Islands is well positioned to facilitate global business of an insurance nature. This may represent the higher risk end of the spectrum for our industry, but this is where the priority to quality over quantity that is the hallmark of the Cayman Islands Insurance Industry will influence success,” she continued.
This year’s Cayman Island insurance sector expansion follows on from last year’s boom when 39 new insurer licenses were issued across a broad spectrum of risk, and hundreds of existing licensees enjoyed continued longevity.