Captive Insurance Times Domicile Guidebook Captive Insurance Times Domicile Guidebookwww.captiveinsurancetimes.com www.captiveinsurancetimes.com60 61

With a total of 703 insurance licensees and a total value of USD 15.4 billion in premiums (as of December 2018), the Cayman Islands is the second largest captive jurisdiction,

and a major jurisdiction for healthcare captives. Cayman is also a strong jurisdiction for group captives and catastrophe bonds.

Thanks to its high standard of living, robust, yet flexible and competitive regulatory regime, infrastructure and high levels of expertise and experience in service areas such as insurance, legal and accounting, Cayman continues to be a domicile of choice for insurance business.

As the regulator of the financial industry, the Cayman Islands Monetary Authority (CIMA) actively strives to protect and enhance the reputation of Cayman while remaining responsive, practical and accessible to clients and stakeholders within the public and private sector. With many of the world’s leading legal firms, audit companies, insurance managers and banks registered in Cayman, such clients can have the comfort in knowing that they have the access to various specialists with many years of experience.

CIMA provides four main classes of insurer licence for insurance and reinsurance companies, namely Class A for domestic insurers, B for international insurers to carry on insurance and/or reinsurance,

C for fully collateralised international insurers such as cat bonds and other insurance-linked securities, and D, which includes large openmarket reinsurers.

The Class B licence is essentially for captives, and this is sub-divided into three categories, such as Class B(i), which includes insurers with at least 95 percent of the written net premiums originating from the insurer’s related business.

Class B(ii) is for insurers with more than 50 percent of the net premiums written originating from the insurer’s related business, and Class

B(iii) includes insurers with 50 percent or less of the written net premiums originating from the insurer’s related business.

There are two-tier capital and solvency requirements for all licensed insurers in Cayman.

Specifically for captive Class B insurers, they are for ‘general’ and ‘life’ business, respectively: (i) USD 100,000 and USD 200,000; (ii) USD 150,000 and USD 300,000; and (iii) USD 200,000 and USD 400,000.

More information on captive insurance in the Cayman Islands can be found at www.cima.ky.

Cayman Islands