Reinsurance sector ‘thriving’ in Cayman, expert says

| 27/01/2023 | 17 Comments
Graham Mackay, Cayman Islands reinsurance, Cayman News Service
Graham Mackay

(CNS): The reinsurance sector in Cayman is thriving, according to Graham Mackay, the chairman of the Cayman International Reinsurance Companies Association. Mackay was one of a number of local delegates who took part last week in the annual New York breakfast briefing, the first after a three-year hiatus due to the pandemic, hosted by representatives of the Cayman Islands financial services industry.

Following the breakfast, an expanded Cayman Finance Reinsurance Roundtable event focused on updates from the Cayman reinsurance sector and the benefits of doing business here.

“The reinsurance industry in Cayman is thriving, and we are proud to have this opportunity to showcase the benefits of the Cayman Islands to the reinsurance sector in New York,” Mackay said.

But his comments come just two weeks after the Cayman Islands Insurance Association (CIIA) confirmed that customers in the Cayman Islands could expect their insurance premiums to go up this year by as much as 30% with rationed cover, mainly due to reinsurance issues. “Insurers will need to increase rates to cover the increased cost of reinsurance. Along with these increases many insurers will effectively be rationing the coverage offered as less insurance capacity is available,” the association had said.

However, local experts have explained that the successful registration of reinsurance firms in the Cayman Islands is unrelated to the increase in premiums and the growth comes mainly from the life and annuity fields with few registered firms doing business with local companies.

According to Cayman Finance CEO Steve McIntosh, the breakfast and roundtable event demonstrated the strength of the partnership between the government and the industry and their commitment to ensuring the growth of the financial services industry.

In his keynote address at the breakfast event, Minister Ebanks noted the importance of New York City to the continued success of the industry. “The New York-Cayman Islands relationship supports the vitality of the financial services industries in the US, and in our Islands,” he noted.

He said that taking friends for breakfast allowed them to reaffirm that friendship, find out what’s new and share plans. “It’s been three years since we’ve held this briefing, and I’m delighted that we are back in New York to check in with each other and to continue moving sound business forward,” he said.

The breakfast briefing was attended by over 150 representatives from a wide cross-section of the financial services industry, with close to 45 travelling from Cayman. It was hosted by Cayman Finance, in partnership with the Ministry of Financial Services and Commerce, the Cayman Islands Monetary Authority (CIMA), the Cayman International Reinsurance Association (CIRCA), and members of the financial services industry. The event was held at the Harvard Club and provided an opportunity for participants to network and hear updates from Government and CIMA.

While in New York, the Cayman delegation also took part in a variety of meetings with key industry stakeholders. Afterwards, the Cayman delegation moved on to Washington DC to formally open the CIG office there, which is being headed up by Chris Duggan.

Cayman Finance said it would be partnering with the Cayman Islands Government and other organisations to host additional international events in 2023.

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Category: Business, Financial Services, Insurance

Comments (17)

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  1. Noname says:

    Do we need to mention that the capital requirements for reinsurance companies that do not conduct their business on island are one of the lowest?

    Those entities are taking advantage of the lack of a proper regulatory framework and enforcement and will certainly not conduct business on island as a mechanism to avoid being under scrutiny by CIMA .

    I would recommend to watch the movie the Laundromat and some participants to Mr Malchus Irvin Boncamper.

  2. Anonymous says:

    Meanwhile, the Minister of Finance, Cayman Finance, and CIMA sleep walk at home, doing nothing to support fairness and legitimate domestic business and banking inside the Cayman Islands. Banks have been left alone to charge their Cayman-based clients whatever fees they can devise, and treat everyone like a wanted felon, under any rolling pretext they choose. In less than 20 years it’s gone from supportive and just, to obstructive and terminal. Butterfield are now contacting longtime clients to tell them they are cutting them a cheque because some risk officer in Nova Scotia thinks they don’t meet their internal unpublished customer risk profile. Where do they go now André? When will Class A licensed banks be made to publish their full fee schedule and client acceptance policy? Banks should not hold universal discretionary license to turn away law-abiding business in the Cayman Islands, if we want to retain commerce here.

  3. Anonymous says:

    The Captive reinsurers referred to in this article are not permitted to reinsure Cayman class A domestic insurance companies.

  4. Anonymous says:

    If they are thriving so much in Cayman, why don’t the Cayman Islands not have the cheapest insurance rates in the world?

  5. Anonymous says:

    Since it is thriving perhaps you Mr. Mackay could have a talk with your fellow insurers and get them to roll back their plans to increase the premiums for us . Right now a lot of retirees are having to decide whether we can buy groceries or pay Cinico so how the hell will be be able to pay increase fees on house insurance when it is already too high. I hope this government will lobby these insurance companies to give us a break or they might have to repair many houses after the hurricane season because we just won’t have the money to cover it. Just asking for a group of retires – looking forward to your response.

  6. Anonymous says:

    And the rich get richer and the poor poorer.

  7. Anonymous says:

    Any business model that can increase billable revenues by 25%, and then 30% y-o-y, without any offsetting claim payables, would certainly stand to be thriving. If you can’t make money under those conditions, then there is a serious problem.

    • Anonymous says:

      If it’s that easy suggest your start an insurance company. Just think of all the money you’ll make.

      • Anonymous says:

        Insurance is a game of chance or of the inevitable, which is hoped to materialize never or later (rather than sooner) by the insurer, while the insured keeps paying usurious premiums. Talk to an actuary or a lawyer, or both.

      • Anonymous says:

        Do you have the minimum $3 million starting capital required to start your own insurance company? I know I’m saving up and I should get there in the next 240 years or so.


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