12 October 2017Analysis

23 new insurer licenses issued in Cayman Islands so far in 2017

The Cayman Islands insurance industry has issued 23 new insurance licenses so far in 2017, as of October 9.

There were 7 new Class B formations in the third quarter of 2017, including two third-party insurers. In the entirety of 2017 there have been 20 Class B licenses issued, 11 of which represent third party insurers, and 3 Class C licenses.

By comparison, the total number of insurer licenses issued in 2016 was 39.

“The picture so far in 2017 continues to look positive and is expected to improve further as we move into the 4Q which is traditionally the busiest season for new formations, as a result Cayman looks on track to repeat the success of 2016,” said IMAC chair Linda Haddleton. “This is rewarding news for the jurisdiction and demonstrates the continued confidence in the Cayman Islands as a jurisdiction. It is particularly pleasing to note the number of captives formed to write third party business as the diversity of Cayman licensees continues to develop and shows the undoubted strength of innovation in the Cayman Islands market and the ability to create alternative risk financing solutions.”

Haddleton continued: “There is no doubt that trade and commerce becomes more global every day, bringing many challenges but also opportunities.  The more broad your experience, the more innovative you tend to become.  Exposure to wide-ranging financial structures allows for lateral thinking when it comes to innovative structuring and development of appropriate regulations.  Given the range of well-established sectors in our financial services industry, the Cayman Islands is well positioned to facilitate global business of an insurance nature.  This may represent the higher risk end of the spectrum for our industry, but this is where the priority to quality over quantity that is the hallmark of the Cayman Islands Insurance Industry will influence success.”