The Cayman Islands Monetary Authority (CIMA) has released the latest licensing statistics for the insurance sector, indicating a robust performance in the captive insurance industry.

In the third quarter of 2023, CIMA granted eight new insurance company licenses, maintaining the momentum observed in the preceding quarters.

Year-to-date figures for 2023 reveal a total of 24 new international licenses issued by CIMA, reflecting a consistent trend of growth.

With the final quarter traditionally being a busy period for licensing activity and a healthy pipeline of new business reported by Cayman insurance managers, the jurisdiction is poised for another prosperous year.

Over the past seven years, the Cayman Islands has consistently welcomed more than 30 new international insurance licenses annually.

As of Q3 2023, the Cayman Islands boasts a total of 679 licensed Class B, C, and D insurance companies. These entities collectively underwrite approximately $57 billion in premiums and possess total assets amounting to $137 billion.

These figures firmly establish Cayman as the second-largest captive insurance domicile worldwide, with notable growth seen over the past two years. Premiums have surged from $23 billion, and assets have risen from $75 billion in 2021.

This year’s licensing activity also featured the addition of five new portfolio insurers and one Class D open market reinsurer.

The adoption of Cayman’s modern Portfolio Insurance Company legislation has enabled insurance companies to enhance their risk management through the incorporation of cells as Portfolio Insurance Companies.

The reinsurance sector has emerged as a significant component of Cayman’s international insurance business in recent years. Currently, there are eight Class D licensed reinsurance companies, a substantial increase from three in 2017.

North America remains the dominant risk location for the Cayman Islands’ international insurance industry, accounting for 90% of the total in Q3 2023.

Notably, medical malpractice liability, workers compensation, general liability, and property lines of business collectively constitute nearly 70% of licensees.

Lesley Thompson, chairperson of the Insurance Managers Association of Cayman (IMAC), attributed the industry’s continued growth to CIMA’s exemplary proportional regulatory approach.

She stated, “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. 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.”