Insurance industry sees slight uptick

Cayman has seen a slight uptick in the number of international insurers registered here through the first half of 2018, according to recently released statistics from the Cayman Islands Monetary Authority.

After taking a slight dip in the first quarter, the number of international insurers was 698 as of the end of June, compared to 696 at the end of 2017.

The Insurance Managers Association of Cayman stated that 12 new insurance licensees registered in the second quarter of this year. The association attributed this to the territory’s legislative framework and positive credit outlook attracting insurers from other jurisdictions, including one company that recently redomiciled here from Panama.

The Insurance Managers Association of Cayman also attributed some of the rise to recent legislative changes that allow captive insurance companies to incorporate subsidiaries, referred to as “portfolio insurance companies.”

“We’re proud of our portfolio insurance companies, which have formed a consistently growing portion of the market – despite being relatively new to Cayman’s international insurance mix,” association chair Erin Brosnihan said. “There are 13 total [portfolio insurance companies] to date.”

She added that Cayman is also the leading jurisdiction for healthcare captives, representing almost one-third of all captives.

“Medical Malpractice Liability is once again our largest primary line of business, with approximately 32 percentof companies reinsuring MedMal,” Ms. Brosnihan said. “Workers’ Compensation is the second largest, with 22 percent of companies assuming this risk.”

The number of international insurance companies in Cayman peaked around 2009, when 787 were registered here.

Along with a rise in the number of insurance companies, the first half of 2018 also brought with it an increase in mutual funds from 10,559 at the end of 2017 to 10,708 as of the end of the second quarter of 2018.

However, the banking sector has continued its long decline, according to CIMA statistics that run through the end of March. Those statistics state that one more “Class B” bank – which are restricted to conducting business offshore with non-residents – left the territory in the first quarterof this year, bringing the number of Class B banks to 138 and the total number of banks to 149.

The banking industry has been diminishing steadily since the early 2000s, when there were more than 500 banks here.