The latest figures from Cayman’s regulator show the jurisdiction’s reinsurance sector is expanding rapidly.
According to the Cayman Islands Monetary Authority, the jurisdiction’s reinsurance companies held US$101.5 billion of assets at the end of 2025, up from US$23 billion in 2020. The number of reinsurance companies has reached 113, up from 58 in 2020.
“The latest figures reinforce the rapid growth we’re seeing across the reinsurance sector in Cayman,” said Brittany MacVicar, associate director for insurance and reinsurance at Cayman Finance, in a 23 Feb. press release that hailed the significance of recent reinsurance statistics.
One reason for the increase is that demographic shifts in the United States mean there is insufficient local capital to cover life and annuity insurance needs. As a result, Cayman has emerged as an efficient jurisdiction to pool the international capital needed to fill the deficit. “As the global insurance protection gap continues to widen, Cayman is well-positioned to play an increasingly important role in channelling international capital to meet growing demand for insurance and reinsurance capacity,” said MacVicar.
Indeed, Cayman Finance notes that approximately 90% of Cayman’s reinsurance business comes from the US and Canada. This stands in contrast to fellow Caribbean reinsurance heavyweight, Bermuda, which has a much higher proportion of European exposure.
Cayman’s success in reinsurance is due to many of the advantages that have helped it succeed in other parts of financial services. “The jurisdiction has become a domicile of choice for international reinsurers seeking an efficient, well-regulated jurisdiction with English common law certainty and a deep bench of specialist expertise,” said MacVicar.
It helps that Cayman already has a well-established captive insurance industry, while the number of reinsurance professionals on the islands has expanded rapidly in recent years. David Self, general manager of the Cayman International Reinsurance Company Association, noted that “as the sector has developed, actuarial and technical expertise on island has expanded alongside it – reflected in the launch of the Cayman Actuarial Network, which speaks to the growing depth of professional capability supporting the market.”
Safety first approach
Yet perhaps the most important factor has been regulation. Cayman has a flexible range of licences that make the jurisdiction especially appealing to small to medium-sized reinsurance operations. This has become particularly relevant in recent years as the global insurance industry is disrupted by insurtech– companies that blend insurance and technology – entrants and private equity-backed reinsurance vehicles.
Cayman offers regulatory flexibility, said MacVicar. Self also highlighted the jurisdiction’s risk-based regulation. “Cayman’s reinsurance sector has developed because it provides a stable, well-regulated platform for long-term insurance risk,” said Self. “The framework overseen by the Cayman Islands Monetary Authority is risk-based and aligned with international standards, with capital requirements calibrated at levels comparable to other leading jurisdictions.”
Another important safety measure is that Cayman-based reinsurers must leave collateral in the US. “For US business in particular, statutory reserves remain fully collateralised in the United States through asset-withheld structures or regulated trust arrangements,” said Self. “That dual-layer oversight is an important safeguard.”
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