Licensing statistics indicate that the insurance industry is set for another successful year, according to the Cayman Islands Monetary Authority.
CIMA said in a press release it licensed 20 new insurers or reinsurers in the first six months of 2021. This compares to 12 new licences during the same period last year and 36 licences issued in all of 2020.
At the same time, 30 captive licences were cancelled last year. This was a considerable reversal from 2019 when CIMA issued 33 new captive licences against 90 cancellations.
The 770 total insurance licences at the end of June include 657 Class B, C and D licensees – five more than at the end of 2020.
The number of insurance managers, however, is down to 21 from 23 six months earlier.
The authority said it is “pleased with the continued growth of the Cayman Islands’ international insurance sector even at a time when a global pandemic continues to pose serious challenges to corporates and economies”.
More than 90% of the risks insured in Cayman relate to North America. Medical malpractice continues to be the largest primary line of business of Cayman captive insurers (24%), followed by workers’ compensation (22%).
The Insurance Managers Association has decided that the Cayman Captive Forum, typically Cayman’s largest financial conference, will have to take place once again in a virtual format.
The online event is scheduled to run from 30 Nov. to 2 Dec.
Forum committee chair Jackie Campbell said, “While we are disappointed that we are unable to welcome our clients, friends and colleagues back to Cayman this year, we are excited to host what promises to be an excellent conference in a virtual format.
“We are hopeful we will be able to move forward with an in-person program again in 2022,” she added.
Domestic insurers record US$90 million underwriting income
Cayman has nine locally incorporated insurers among a total of 25 Class A insurance licensees that are allowed to operate domestically.
Based on unaudited statistics released by CIMA, these companies made an underwriting profit of US$90.08 million in the first six months of 2021.
The most profitable business lines were liability insurance ($23.86 million), health ($21.24 million), and marine and aviation insurance ($17.76 million).
In the property segment, Class A insurers saw an underwriting loss of $3.71 million in the first two quarters. Most of the written premiums in the property segment are ceded to reinsurers.
In 2018 and 2019, the latest available audited figures, Class A insurers recorded an underwriting profit of $175.84 million and $188.82 million, respectively.