Cayman targets insurance growth with NAIC application, while protecting captive market
The Cayman Islands is positioning its application for Qualified Jurisdiction Status (QJS) with the US National Association of Insurance Commissioners (NAIC) as a way to expand its insurance and reinsurance ecosystem, while ensuring its established captive insurance sector remains central to the jurisdiction’s strategy.
Premier and Minister for Financial Services and Commerce Andre Ebanks (pictured) said the government would pursue the initiative “synergistically”, with captive insurance forming an important part of a broader push into reinsurance, insurance-linked securities (ILS) and related financial services.
“Captive insurance is very important to us,” Ebanks told reporters during a press briefing. “We have many stakeholders that have had sometimes a 30-year relationship with the Cayman Islands.”
He said the government would consult closely with the captive sector as the QJS process progresses, adding that regulatory changes would be developed collaboratively.
“All of our consultations and any regulatory adjustments we make will be made in full collaboration, particularly with the captive insurance industry,” Ebanks said, with the aim of creating “an even more vibrant ecosystem for insurance as a whole”.
The premier specifically cited the Insurance Managers Association of Cayman (IMAC), saying the organisation would “have a seat at the table” and that the government would welcome its feedback.
Cayman’s QJS application was formally submitted ahead of the NAIC’s summer meeting in Columbus, Ohio. Ebanks said the application is being approached as a continuous process, with the initial phase focused on property and casualty (P&C) insurance.
He said the P&C framework appeared relatively settled in both Cayman and the NAIC system, allowing the jurisdiction to concentrate resources where fewer legislative or policy changes are required. The strategy is also intended to create opportunities for additional international capital to support US states exposed to hurricanes.
Life and annuity reinsurance would follow as the NAIC’s policy framework develops and Cayman makes corresponding upgrades to its own regulatory system.
Ebanks described QJS as ultimately being about trust between regulators, saying the standards were designed so US commissioners could have confidence that Cayman would respond appropriately if problems arose.
The government sees that trust as potentially opening the door to more insurance business and, in the longer term, reciprocal jurisdiction status.
The premier also said reinsurance could reinforce Cayman’s existing strengths in investment funds, captive insurance and ILS. The objective, he said, was to build a wider professional ecosystem, including opportunities for Caymanians working in fields such as actuarial science.
The QJS assessment is expected to take approximately 16 to 18 months. Ebanks said there was no “plan B” if the application failed, comparing the approach to “burning the boats”.
Instead, he expressed confidence based on Cayman’s history of meeting international standards through collaboration between government, regulators and industry.
“I would hope to see the same thing here,” he said.
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