Cayman’s insurance market saw mixed trends in 2021.
The number of domestic Class A insurers that offer services locally declined from 27 to 25 and the number of insurance intermediaries also fell. Licensed insurance agents dropped from 46 to 36 while the 23 insurance brokers remained the same as in 2020.
However, unaudited gross written premiums of US$701 million in the first three quarters indicated that the size of the domestic insurance market likely increased last year and exceeded the audited gross written premiums of $807.3 million in 2020 and $829 million in 2019.
The captive insurance market, in turn, saw a slight pick-up in licensing activity.
At the end of 2021, the Cayman Islands Monetary Authority counted 661 Class B, C and D insurance companies, after a total of 13 new licences were issued in the fourth quarter. The total number was nine more than in 2020 and exceeded the 2019 figure by 15.
The number of insurance managers, meanwhile, declined from 23 to 20.
The total value of premiums for the 661 companies in the international insurance sector reached $23.1 billion in 2021 and total industry assets stood at $75.2 billion.
Cayman’s international insurance market remains focussed on North America, where 90% of the insured risks are located. Almost a third of these insurers are healthcare captives.
Medical malpractice continued to be the predominant line of business, accounting for approximately 23%, closely trailed by workers’ compensation with 22%.
Most captive insurers are pure captives (237) followed by 127 group captives. Another 22% of the international insurers were formed as segregated portfolio companies with more than 300 segregated portfolios, CIMA reported.
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