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.
Although the 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 58 licences in the third quarter of 2020; its total assets equating to US$25.8 billion. The ongoing growth of the industry was evidenced by a reinsurance subsidiary of a large New York-based private equity firm taking advantage of the amended 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 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 “Special Economic Zone” treatment of reinsurance businesses and their staff. This entails exemptions from many migration restrictions and expedited licensing procedures. Alternatively, senior management personnel of reinsurance businesses, as well as other categories of financial services professionals, may apply for residency under the Immigration (Transition) Law (2018). 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.