The commercial reinsurance industry in the Cayman Islands is one of the fastest growing sectors in the financial services industry, and has experienced double digit growth year on year.
In recent years, the Cayman Islands’ commercial reinsurance industry has experienced impressive double-digit growth annually. By the end of Q1 2025, the number of reinsurance licences reached 103, with total assets valued at upwards of US$93.2 billion. This surge is attributed to a notable trend: many reinsurance companies are now choosing to domicile in the Cayman Islands. This shift to Cayman is often attributed to the Cayman Islands’ continuing adherence to tax neutrality and Bermuda’s adoption of the European Union’s Solvency II (SII) framework for its insurance operations, which is not a regulatory requirement in the US, however there are additional reasons for this continued increase in business.
The Cayman Islands also offers significant advantages for US carriers and other non-European or global reinsurance-focused entities in that it is able to provide greater efficiencies regarding regulatory capital ratios and investment options, by allowing reinsurers to develop their own internal regulatory capital models. These internal capital models frequently incorporate the US National Association of Insurance Commissioners (NAIC) risk-based capital guidelines, enabling more efficient capital structuring. Additionally, reinsurers can align with US regulatory and reporting requirements, offering familiarity and efficiency in operations resulting in lower overall operating and redomiciling costs.
There is little appetite in the Cayman Islands to pursue the SII framework and this is primarily because across all areas of Cayman’s financial services sector, the jurisdiction is predominantly US-facing, and therefore SII would simply not be a match for the jurisdiction’s main clients.
In April 2024 the Cayman Islands Reinsurance Association (CIRCA), with other stakeholders, hosted the inaugural [Re]Connect conference for the reinsurance industry. Following the success of the conference in 2024, a second conference was held in 2025 with attendance at over 650 delegates with just under half being from overseas. [Re]Connect clearly showcased that Cayman is now another viable option within the reinsurance space with world class facilities and service providers. [Re]Connect also underscored the Cayman Islands’ government, CIRCA, CIMA and other stakeholders’ steadfast commitment to making Cayman an attractive domicile for reinsurance carriers.
For many US start-ups, the Cayman Islands is the most appropriate jurisdiction for their new reinsurance venture and their staff. A significant factor for executives of reinsurance entities is the value added from what life in Cayman offers. For example, executives can secure a 25-year Substantial Business Presence Certificate, which means immediate security of tenure. Once working in Cayman, all staff can buy or build a home without restrictions, educate their children in superb schools, benefit from the world class healthcare facilities whilst being safe in the knowledge that that there are no capital gains, income or payroll taxes.
This combination of government certainty, excellent service providers and insurance professionals, regulatory flexibility, cost efficiency, and strategic alignment with US standards and consolidated jurisdiction-wide commitment to the reinsurance sector are all mixing to fuel the Cayman Islands’ rise as another world class domicile for the global reinsurance industry.
