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 2022.
Although the commercial reinsurance industry is relatively small in the Cayman Islands when compared to that sector in Bermuda, it has shown evidence of continued growth over the last few years, including 2020. Reinsurance represents 9% of Cayman’s international insurance industry with a total of 61 licences in the second quarter of 2021; its total assets equating to US$23.1 billion. By drawing a distinction between reinsurance and captive insurance and by offering effective regulation and competitiveness, the Cayman Islands is in a strong position to attract substantial reinsurance business through either new enterprises establishing themselves in Cayman or those re-domiciling in Cayman from elsewhere.
The benefits offered to attract business and personnel to Cayman’s shores include senior management personnel of reinsurance businesses, as well as other categories of financial services professionals, being allowed to apply for residency under the Immigration (Transition) Act (2021 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 he or she is an owner or is employed in a senior management capacity in an occupation approved by the Chief Immigration Officer (without a work permit). The spouse (or civil partner) and dependent children of the Certificate holder are also allowed to reside in the Cayman Islands. This allows for the seamless immigration of executive management or specialists such as actuaries to relocate and domicile in the Cayman Islands.