Insurance sector predicting ‘exceptional’ year
(CNS): The number of premiums written and total assets managed by insurance firms licensed in the Cayman Islands doubled in the fourth quarter of 2023, standing at $58 billion and $130 billion, respectively. Insurance sector licensing statistics released by the Cayman Islands Monetary Authority (CIMA) show that last year, the jurisdiction issued 40 new international insurance licences — the largest number issued in a single year for more than a decade — and there are twelve additional licence applications that remain under review.
Cayman’s offshore insurance industry is going through a period of significant growth, according to industry experts, who expect 2024 to be another great year.
“Despite a very competitive international market, the Cayman Islands is increasingly the jurisdiction of choice for insurance companies thanks to our highly developed captive industry, transparency, integrity, professional yet flexible risk-based regulation, and accessible business-focused regulators,” said Kieran Mehigan, chairperson of the Insurance Managers Association of Cayman (IMAC). “The conditions that enabled record-setting new business in 2023 have laid the foundation for a truly exceptional year for the industry in 2024.”
Between October and December 2023, CIMA issued fifteen new international insurer licences: eight B(i)s, six B(iii)s and one Class C, as well as two new portfolio insurance companies. Licences were also issued to eight portfolio insurers and one class D open market reinsurer. Traditional single-parent captives licensed as B(i) licensees from various industries have also increased in 2023. The B(iii) licence class, majority third-party business, has seen a greater increase in numbers as the jurisdiction attracts new reinsurers, particularly life reinsurance companies.
There are now 683 Class B, C and D insurance companies licensed in Cayman, the second-highest number of such companies here since 2017.
The Cayman Islands is the second-largest domicile in the world for captives and a dominant jurisdiction for healthcare captives, group captives, catastrophe bonds and international reinsurance. Mehigan credited the regulator with helping to increase business for the industry throughout this year, saying that it had been “key in supporting this solid growth through their positive engagement, responsiveness, and clarity throughout the licensing process”.
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There should be better regulation of insurance companies generally with price controls on local insurers,as the premiums people pay now are uncapped.
We had a 100% increase in premium last year. That should be illegal.
I call on CIMA and cabinet to do more.
Of course they will have an exceptional year!
I’ve had two life insurance policies in place for decades for wifey and myself. I’m so sick of my payments going into “arrears” yet I can produce receipts for my consistent payments. Had enough of their “clerical errors” or whatever they are. I’ve had to make repeat payments, yet no accountability from the insurance carrier!!
Cancelled my policy and collected the accrued dividends!!
Insurance companies are actually WORSE than banks!!
These companies have no impact and not a thing to do with your health insurance carrier or home insurance carrier. This article is not talking about that at all. The lack of understanding in these comments is scary. It might as well be an article about issuing a small craft advisory and ya’ll complaining about the traffic jams. smh.
The problem with understanding started with a poorly written article and headline that helped confuse readers.
Many of us knew full well, it’s a good platform for the airing of our grievances however.
100% agree. As soon as I read the headline I knew it was problematic. Even someone well versed in insurance would struggle a bit to interpret that this has little to do with local insurance premiums and insurer profit relating to their home, car or health.
Agreed. What is very interesting to consider is that as we are the second largest domicile for captives, the level of knowledge available here should be fairly high, yet we suffer from some of the highest rates in the local market. Maybe it’s time we leverage some of that knowledge that must be kicking around here.
Annual premiums of 58 billion or roughly $1m for every man woman and child on Cayman should be a bit of a clue they’re not talking about local insurance companies!
Issuing new licenses, meanwhile the existing ones claim to be barely hanging on. They are killing us.
Based on the increases in my health and property insurance this last year, I can believe that insurances companies are having a good year.
At whose expense though….
Year over year 30% premium increases and not a single claim against. Margins couldn’t be higher.
Won’t be insuring my property this year. In the event of catastrophic damage, it’ll be UPM’s problem.
Don’t blame you.
If your trellis work or pergola is blown away it’s not covered.
If your fencing is destroyed, it’s not covered.
If your trees and garden are destroyed, not covered.
If you make a claim, the first $50,000 is paid by you.
Furniture cover is extra.
Your house has to be destroyed before you can claim , even tho the foundations are still there , you have to insure them.
ha…you obviously don’t have a mortgage…because if you did your bank will make you take out insurance
Meanwhile, despite the wealth sloshing around these islands, some of our residents live in crushing poverty in houses barely fit for habitation. And the people at the top who profess to care for Caymanians are raking in ridiculous money in salaries and ‘expenses’. Bottom line is they don’t give a toss. As long as their nest is feathered, the rest can struggle. I would shame on you but most of them can barely spell the word shame.
yes yes yes! CAYMANIANS PLEASE STOP ACCEPTING TURKEY DINNERS AND FRESH BEEF! THIS IS NOT GOING TO HELP US!!
What is with the angry faces? This article says a sector of the Cayman financial services industry is booming and people be mad? Wha!? You know these companies aren’t writing the insurance for your house right? These are mostly self insurance vehicles because everyone outside of Cayman also think commercial insurers are charging too much so they would rather insure themselves with the help of Cayman. Also the industry hires tons of Caymanians, gives Caymanians scholarships, and pays tons of fees into the coffers here keeping JuJu in the black so she can build a school and name it after herself. But sure, bite the hand that feeds you.
Because it doesn’t matter what kind of insurance it is, they are all legal scams. They are in the ‘risk’ business but take no actual risk. Crooked industry.
I wish when I was in business , I could increase my fees by 30% to make up for my previous year’s loss of Profit, not income, Profit.
Say what you like about risk, it’s simply a compulsory bet, just like a Casino.
Can’t wait to hear the governments response to this. Every company on this islands is squeezing every red cent out of people because it knows it can do so unimputed. All the companies have boards and Unions and Societies but us the workers are too dumb to put something together for our benefit??
Hedge funds disguised as insurance companies.
Uninformed comment.
Just marketing fluf…by IMAC based on CIMA data. Class Ds add to our domestic GDP. Class B and Cs do not have any physical presence…just glorified CIMA licenced exempted companies.
Adds to the auditing firms coffers though as each requires a Cayman auditor!
But the insurance industry is the poor stepchild to the funds industry.
24 @ 8.01pm. Hardly poor! But I agree.
You haven’t a clue. B’s, Cs and IMAC members and clients have by far more impact on the economy than Ds, both directly and indirectly.
keep changing the light bulbs, buddy.
Sure thing, right after you clean the toilets.
classic comment by one who cannot argue on merits but good at hurling insults. We onky have 2 class Cs and a habdful of class Bs with physical presence. So pray educate us. As a Caymanian work in the offshore insurance sector for more than 2O years I agee with original poster. All IMAc does is create jobs for expats from a certain English speaking EU country.
Will do. You keep racking up negative Karma. We all pay in the end, and sometimes before.
So will we (the average Caymanians) actually be able to afford home and medical insurance next year without depriving ourselves of other essentials? Or should we start robbing joints from now to survive?
Asking for all my friends…
They are predicting an ‘exceptional’ year.
The people and crew of the Titanic thought they would have an exceptional voyage.
Unregulated parasites, in the same scum bucket as retail banks. CIMA issues licences to steal and gets fat off of fees but does sweet FA to regulate the industry. Risk my arse, is there a risk that insurance companies won’t make exorbitant profits no matter the weather? Of course not!
“The conditions that enabled record-setting new business in 2023 have laid the foundation for a truly exceptional year for the industry in 2024.” Not hard to believe when you can raise rates as you please and blame global warming.
yet home insurance has gone up 35% with no alternatives as nobody will insure Cayman property as new business 😒
And all the while my medical insurance premium went up 40% and my home insurance went up 32%.
More profit for insurance companies, pricing the average person out of the market.
Similar increases next year and we won’t be able to afford insurance any longer.
Perhaps the directors of our insurance companies could develop a taste for less expensive wines, to help reduce our premiums.
This article has nothing to do with the local retail market, which I agree is a rip-off.
There is a lack of reinsurance capacity in the domestic market. There are 6 CIG approved health insurance companies. CIMA however last year licenced a subsidiary of Health City’s parent as a Class A insurer. They however are not listed by CIG as an approved local health insurer. It remains to be seen if Health City group will now enter the Health Insurance space since they already have a CIMA licence.
insurance Rates are increasing globally..just like interest rates. This is not a Cayman specific problem.
I’ve heard several people say they will no longer be insuring their homes as the premiums have become outrageous. As for health insurance premiums,if you’re not in a group (hello seniors and retirees), they’re just obscene.
I’m already there. We are in the terrible position of having to choose between home and health insurance — both prohibitively high.
Don’t get old, people. You won’t like how you are treated.
thats all gobbledegook to me…and i work in insurance
biggest legal scam ever Insurance!
Second to religion but yes, close.
You are a fool.
And you likely tithe 10% rather than investing it and building your own nest egg.
Choose to be a leader of your life, instead of a follower of some ancient scripture.
Where else in your life do you outsource to others? Your happiness? Your well being? Your finances?
So your God is money and self indulgence. Check.
God is just dog spelled backwards. Praise be to Rover.
What we need is for Cayman banks to offer mortgage guarantee insurance. If you do not have a mortgage you can “self” insure your property.
Having home insurance is up to you once you no longer have a mortgage. So do your best to get there and you can choose to trust your luck.
And God forbid you loose the house in a catastrophe when retired where, who do you turn to?
Bruh, we live in the handout capital of the world. He will be fine.
What if he doesn’t have the right brand of social iron? What then?
Then just don’t buy it. Choice is yours.
Have no choice with health insurance.
Insurances are high way robbers. I payed my cars insurance for 55 years with no claims and when I got 75 years old. they raised the preminiums by 60 % Shame,shame. Shame.
So you got to 75 and still don’t understand how insurance works!