Cayman Q1 Licensing Surge Signals Insurance Sector Growth

The Cayman Islands' international insurance sector expanded in the first quarter of 2026, with new licensing data pointing to sustained growth and increased market activity, according to the Insurance Managers Association of Cayman (IMAC). 

Data released by the Cayman Islands Monetary Authority (CIMA) show that 14 new international insurer licenses were issued between January and March, including 6 Class B(i), 7 Class B(iii), and 1 Class C license. An additional 4 portfolio insurance companies were approved during the period. The figures mark a notable increase from the 5 licenses issued in the same quarter of 2025, reflecting continued demand for Cayman as a global insurance domicile. 

The new approvals bring the total number of Class B, C, and D insurers in Cayman to 722. Collectively, these entities write approximately $51 billion in premiums and hold an estimated $176 billion in total assets, underscoring the jurisdiction's scale and significance in the global insurance market. 

Growth in the Class B(iii) segment, often associated with reinsurance structures, remains a key contributor to expansion, as Cayman continues to attract reinsurers. Industry momentum in this area is expected to persist through 2026, supported by increased engagement across the sector. Continued growth in single-parent captives also signals Cayman's competitive standing among international domiciles. 

Cayman Insurance License 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

"It is encouraging to see the increase in new licensees during the first quarter of 2026. Cayman remains well-positioned, supported by a vibrant international insurance industry, as demonstrated at the recent ReConnect conference, which attracted over 675 attendees," said James Trundle, chair at IMAC. 

"During ReConnect, the Cayman Islands Premier also announced the jurisdiction's intention to pursue qualified jurisdiction status, with an application expected before the end of Q2 2026. This is a positive step that could further support growth in new licenses by enhancing Cayman's attractiveness to international insurers and reinsurers—particularly those seeking efficient access to key markets," Mr.Trundle said. 

The industry is also preparing for the Cayman Captive Forum, scheduled for December 1–3, which is expected to highlight market developments and reinforce the jurisdiction's position in the global insurance landscape.