"the business of effecting and carrying out contracts-
(a) protecting persons against loss or liability to loss in respect of risks to which such persons may be exposed; or
(b) to pay a sum of money or other thing of value upon the happening of an event,
and includes re-insurance business and running-off business including the settlement of claims".

Regulation of Insurance Business

The Insurance Law (2008 Revision) gives the Cayman Islands Monetary Authority the responsibility of regulating the insurance industry in the Cayman Islands. This includes licensing, ongoing supervision, and enforcement. The day-to-day regulatory oversight of the sector falls to CIMA's Insurance Supervision Division.

Licence Categories

Under the Insurance Law (2008 Revision), CIMA may issue the following categories of insurance licences:

Class A Insurer's licence - permits a local or an external insurer to carry on insurance business in or from the Islands (domestic business).
Unrestricted Class B Insurer's licence - permits an exempted insurer to carry on non-domestic insurance business from within the Islands. Note that captive insurance entities ("captives") are licensed as Class B Insurers.
Restricted Class B Insurer's licence - permits an exempted insurer only to accept non-domestic insurance business from its member or members, or from such persons as may be specifically approved by the Authority. Note that captive insurance entities ("captives") are licensed as Class B Insurers.
Insurance Broker's licence - permits a person to negotiate directly, or through representatives or other means, contracts of insurance or reinsurance on behalf of more than one insurer, or for the placement with insurers or reinsurers.
Insurance Manager's licence - permits a company to operate in or from within the Islands which provides insurance expertise to or for insurers.
Insurance Agent's licence - permits a person (who is not an insurer) to solicit directly, or through representatives, advertising or other means, domestic business on behalf of not more than one insurer, or for placements with insurers or reinsurers.

Standards of Regulation

CIMA regulates the insurance sector in accordance with:

The Insurance Law and regulations;
The rules, guidance, policies and procedures issued by CIMA (see Insurance - Index of Measures);
The Core Principles of Insurance Supervision issued by the International Association of Insurance Supervisors (IAIS).

Status of the Cayman Islands Insurance Industry

Since 1979 when the Insurance Law was first passed in the Cayman Islands, this jurisdiction has become a major centre for international insurance business. The Cayman Islands is the second largest domicile for captives and holds the number one position worldwide for healthcare captives.

Health care is the primary class of business among Cayman-domiciled captives, while workers’ compensation is the second largest class. The Cayman Islands captive insurance industry is composed mainly of companies emanating from North America. The next most important geographical source is the Caribbean and Latin America, collectively.

For current statistics and other data on the Cayman Islands insurance industry can be found in the Insurance Statistics section of this site.

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