Thank you to CIRCA for hosting yesterday's well-attended Reinsurance Insights, where Kara Ebanks, Head of Insurance Supervision Division at CIMA gave a useful regulatory update.
Here's what you need to know:
Strong market growth in 2024
· 2024 is set to break last year's record of 41 new licences
· 31 new licences granted to date, with 10 applications under review (comprising 9 class B(iii)s and 1 class D) and 2 approved in principle
· Of the 694 international insurers currently licensed, 105 are reinsurers
· Total AUM for Cayman international market is now $151bn, an 8% increase since the end of 2023
Not just life and annuity
· P&C business represented 60% of new licences in 2024, which is attributed to investors seeking to meet demand for capacity in the market following recent catastrophes
· Notwithstanding, Cayman remains a growing domicile of choice for life and annuity business
NAIC equivalency
· "Neutral" US state sponsor continues to review Cayman's application for Qualified Jurisdiction ("QJ") status
· No indication of timing as yet but the next phase is for the US state sponsor to visit Cayman and meet with CIMA, the Government, industry and other key stakeholders
· If secured, Cayman's QJ status will benefit class D reinsurers on an opt-in basis, who will be eligible for reduced collateral requirements
Regulatory updates
· Focus remains on developing licence categories for reinsurer brokers and managing general agents, as well as bringing in the updated policy on actuary approval requirements by year end
· Progress also continues on establishing a new class B(iv) licence to, among other things, bridge the proportionality disparity between class B(iii) and class D insurers
· Any policy and legislation changes will continue to be developed in close partnership with industry stakeholders
Connect with our team to understand more about implications and opportunities for your business, and how we can assist.
#Walkers #insurance #reinsurance #caymanislands #ILS
Philip Paschalides Juliana Tang Erin Diachkoff
We L💚ve Making Business and Property Insurance Simple!
2moHi Chris Withers FCII we are looking for a partner is it worth having a conversation?