The Cayman Islands Monetary Authority issued 33 new insurance licences last year – the same number as in 2018. Of the 672 insurance licences in total at the end of 2019, 670 related to international insurance markets, the latest CIMA statistics show.
The total value of premiums of US$18 billion at the end of 2019 was U$2.6 billion higher than in 2018. Total industry assets of $68.9 billion were also up on the previous year, and almost $10 billion higher over a two-year period, the Insurance Managers Association of Cayman said in a press release.
However, the number of international captives and reinsurance companies dropped from 703 to 646 last year. Last year IMAC said that the decline not only reflected mergers and consolidations in the healthcare sector, where Cayman captives are dominant, but also the maturity of the industry with many captives coming to the end of their natural life cycle.
IMAC chair Colin Robinson said the licensing activity for 2019 showed the strength of the domicile and the continued interest in the Cayman Islands as a jurisdiction of choice. “Our new formation numbers are a testament to quality of local and international service providers.”
Both pure captives and group captives were the two main categories among international captives and reinsurance licensees with 283 and 123 companies, respectively.
About 20% of the captive and reinsurance licensees were formed as segregated portfolios with more than 600 segregated portfolios and 27 portfolio insurance companies. Cayman legislation was specifically designed to allow segregated portfolio companies to incorporate one or more of their segregated portfolios or cells as separate legal entities.
Cayman remains the leading jurisdiction for healthcare captives, representing almost one-third of all its captives. Medical malpractice liability (MedMal) continues to be the largest primary line of business with approximately 33% companies insuring or reinsuring MedMal, followed by worker’s compensation as the second largest with 21% of companies assuming this risk.
The vast majority of international insurance companies (91%) insure risks in North America.