Cayman Captive Insurance Sector Ends 2025 with Strong Growth

Cayman's captive insurance industry closed out 2025 with continued growth, according to year-end licensing statistics released by the Cayman Islands Monetary Authority (CIMA) and the Insurance Managers Association of Cayman (IMAC).

CIMA issued ten new international insurer licenses in the fourth quarter of 2025: three Class B(i), four Class B(iii), one Class C, and two Class D. This brought the total number of new licenses for the year to 42, matching the previous year's total and maintaining the highest annual licensing levels seen in over a decade.

At the end of 2025, the jurisdiction was home to 720 active Class B, C, and D insurance companies. These companies wrote $51 billion in premiums and held $176 billion in total assets, representing year-over-year increases of 24 percent and 15 percent, respectively.

"Cayman's continued growth reflects the jurisdiction's robust regulatory framework, business-friendly environment, and depth of professional expertise," James Trundle, IMAC chair, said. "The collaborative and pragmatic approach taken by CIMA has been instrumental in supporting this momentum, and we are grateful for their ongoing engagement and responsiveness within the industry."

Courtesy photo of James Trundle

Class B(i) single-parent captives recorded 19 new licenses in 2025, representing a broad cross-section of industries. Third-party insurers licensed as Class B(iii), including some reinsurance entities, also saw 19 new licenses. Two new licenses were issued in each of the Class C (fully collateralized transactions) and Class D (open market reinsurers) categories.

Cayman's insurance regulatory framework segments international insurers by business type and level of related-party activity. The Class B category includes most captive insurance structures and is further divided into three subclasses.

• Class B(i): Captives writing 95 percent or more related business (from members or affiliated entities); minimum capital requirement: $100,000. Most single-parent captives fall in this class.
• Class B(ii): Captives writing more than 50 percent related business; minimum capital requirement: $150,000.
• Class B(iii): Captives writing 50 percent or less related business; minimum capital requirement: $200,000.

This subclass structure enables CIMA to tailor oversight and capital requirements based on the level of third-party risk exposure.

Other license categories include the following.

• Class C: Entities engaged in reinsurance through insurance-linked securities, including catastrophe bonds, sidecars, and collateralized reinsurance.
• Class D: Commercial reinsurers conducting reinsurance business and other approved activities.

The uptick in reinsurance activity is expected to continue into 2026 and will be a topic of focus at the Cayman International Reinsurance Companies Association (CIRCA) ReConnect conference, scheduled for April 16–17, 2026, at the Ritz-Carlton, Grand Cayman.