Although the reinsurance industry is relatively small in the Cayman Islands when compared to Bermuda, it has shown evidence of continued growth over the last few years, and remains an area for further growth in 2019.
Reinsurance represents 9.10% of Cayman’s international insurance industry with a total of 60 licences in the second quarter of 2019; its total assets equating to US$20.5 billion. The ongoing improvement of the industry was evidenced by a reinsurance subsidiary of a large New York-based private equity firm taking advantage of the new Insurance Law to migrate from a Class B captive licence to a Class D open-market licence. By drawing a distinction between reinsurance and captive insurance and by offering effective regulation and competitiveness, the Cayman Islands are in a strong position to attract substantial reinsurance business either through new enterprises establishing themselves here or those re-domiciling from elsewhere.
The anticipated benefits to be offered to attract business and personnel to Cayman’s shores include “Special Economic Zone Treatment” of reinsurance businesses and their staff. This will mean exemptions from many immigration restrictions and expedited licensing procedures. Alternatively, senior management personnel of reinsurance businesses, as well as other categories of financial services professionals, are eligible for a 25 year residency rights certificate under the Immigration Law (2015 Revision).
The holder of a Residency Certificate (Substantial Business Presence), which is valid for a renewable period of 25 years, is entitled to reside in the Cayman Islands and to work in the business in which they are an owner or are employed in a senior management capacity in an occupation approved by the Chief Immigration Officer (without a work permit). The spouse and dependent children of the Certificate holder are also allowed to reside in the Cayman Islands.