The number of licences granted in a specialist reinsurance category has jumped by half year-on-year and underlines Cayman’s growing strength in the sector, industry experts said on Tuesday.
The Cayman Islands Monetary Authority statistics for the sector showed that six Class B(iii) reinsurance licences were issued in the second quarter of the year.
Alongside the three handed out in the first quarter, that amounted to a 50% increase on the six licences issued over the same period in 2024.
Greg Mitchell, chairman of the Cayman Islands Reinsurance Companies Trust, said. “We are getting a lot of attention of late and growth in the number of licences is good for the financial services industry and good for the island.”
He added, “It’s a strong sign and for our associate members, which increases a lot of their business, we’re happy for them.
“Growth in the financial services industry is good for the island and basically good for the job prospects for young Caymanians.”
Brittany MacVicar, Cayman Finance’s associate director for insurance, reinsurance, trusts and banking, said the figures were good news and reflected the jurisdiction’s reputation as a well-regulated financial centre.
“Beyond the numbers, events like the Cayman Captive Forum, one of the world’s largest captive insurance gatherings, and ReConnect, Cayman’s flagship reinsurance-focused conference, allow market participants to see first-hand the jurisdiction’s regulatory responsiveness, industry depth and quality of local service providers, MacVicar said.“They help decision-makers appreciate what sets Cayman apart.”
Class B(iii) reinsurers are not required to have a physical presence in Cayman and can use licensed insurance managers to provide accounting, administrative and other management services.
MacVicar said Cayman Finance had worked with other bodies and the government, as well as insurance providers, to boost Cayman’s insurance and reinsurance sector profile overseas.
“The growth we’re seeing in 2025 reflects the coordinated efforts of these parties.”
She added: “Cayman’s regulatory environment offers flexibility while maintaining high standards.
“This balance is increasingly attractive to global reinsurers, particularly in the life and annuity space.”
She said that there was a “global insurance protection gap” – the difference between demand for insurance and available coverage – and Cayman’s reinsurers were well-positioned to bridge the divide.
MacVicar added that Cayman was still working towards qualified jurisdiction status from the US National Association of Insurance Commissioners.
The endorsement would give Cayman-based insurers and reinsurers the opportunity to maintain reduced collateral levels under NAIC regulations, which would make it more attractive as a centre for insurance and reinsurance.
MacVicar said, “It effectively means that US insurance supervisory authorities would recognise Cayman’s regulatory regime as largely equivalent to their own.
“This would be an important milestone in reinforcing our credibility and transparency in the US market.”
IMAC chairman Kieran Mehigan said after the Cayman Islands Monetary Authority revealed the latest figures earlier this month: “The international commercial insurance, reinsurance, and captive sectors in Cayman continue to show strong and sustainable growth.
“We are particularly encouraged by the continued expansion of both single-parent and group captives, as well as the increasing number of new commercial reinsurers contributing to the jurisdiction’s momentum.”
CIMA said earlier this month that nine captive insurers had formed, alongside six reinsurers and one insurance company, in the second quarter.
The latest additions mean more than 700 insurers, who write about $41 billion in premiums and manage $152 billion in total assets, call Cayman home.
The figures do not include individual segregated portfolios, highlighting the breadth of activity by the sector in the country.
A total of 16 new international insurance licences were granted in the second quarter, which could help lead to a record-breaking year.
CIMA said that made a total of 21 new licences issued in the first six months of the year, which underlined the continued strength of the sector.
The authority added another nine applications had agreement in principle and 14 more were under review, which would mean 44 new licences so far this year.
Last year’s 42 licences was a 10-year record, and Cayman is on track to comfortably beat that if all the applications to date are approved.