[Re]Connect 2024 – Our key Takeaways reinsurance

• The Hon. André M. Ebanks highlighted reinsurance's pivotal role in Cayman's economic growth, emphasising job creation and educational opportunities for the local community
  
  
• Cayman maintains its tax neutrality and will not implement Pillar Two, while remaining cooperative with international tax reporting obligations
  
  
• Cayman upholds tax neutrality, high regulatory standards and is looking for NAIC reciprocal jurisdiction status

No surprise, it was a great success! Key market participants were able to see and hear first-hand why Cayman is a fast-growing reinsurance jurisdiction.

Our insurance attendees have identified their key takeaways from the conference. Did you know Cayman is gaining momentum in the reinsurance sector both in life and annuity as well as with P&C reinsurers?

Here are our key takeaways:

1. An exciting milestone – Cayman's inaugural [Re]Connect conference attracted c.450 international and local delegates, all keenly interested in Cayman's growth as a reinsurance jurisdiction. There was a real buzz and optimism about Cayman's future as a central player in the global reinsurance market.
2. Government support – In a captivating keynote address, The Hon. André M. Ebanks, MP, Deputy Premier; Minister for Financial Services and Commerce, Minister for Investment, Innovation, and Social Development, stressed the importance of reinsurance in Cayman's next "season". Growth of the reinsurance sector complements Cayman's leading financial services industry and also has the benefit of supporting the local community through new jobs and additional educational opportunities.
3. No global minimum tax – Cayman will continue to be cooperative in tax matters by complying with its reporting obligations; however, it does not intend to implement Pillar Two, thus maintaining Cayman's tax neutrality.
4. Strong Q1 - CIMA issued 12 new insurance licences in Q1 of 2024 and will shortly be announcing the 9th class D reinsurer. There is a healthy pipeline ahead and a variety of applicant types, for example, established reinsurers forming new Cayman entities to complement operations elsewhere, US-based insurers setting up a Cayman affiliate reinsurer and completely new entrants using Cayman as a platform.
5. Reinsurance is growing – Cayman is seeing increased momentum in the reinsurance sector, particularly in life and annuity, with total premium increasing significantly from c.US$11m in 2021 to c.US$33m. That said, it's not all about life and annuity, P&C reinsurers (including InsurTechs) have a long history in Cayman and P&C accounted for 90% of the new licences.
6. Expansion and maturation of talent pool – The government has made Cayman an attractive place to do business and live, with clear paths to long term residency, ability to buy property and the availability of a 25-year visa, among other factors. With this, Cayman is seeing a maturing local reinsurance talent pool with more experienced industry professionals coming to Cayman to support the industry's growth. page 2
7. Robust regulatory environment and international co-operation – CIMA regularly engages in working groups and committees at international forums, regularly attends NAIC national meetings and has also played a central role in developing The Insurance Core Principles (ICPs) 13 on Reinsurance and Other Forms of Risk Transfer. CIMA has signed 50+ bilateral and multilateral cooperation agreements with international regulatory authorities, including an MOU with the NAIC. In addition, CIMA regularly benchmarks its own regulatory measures against international standards and implementation by other jurisdictions.
8. Reciprocal jurisdiction status is on the way – Cayman is seeking NAIC reciprocal jurisdiction status and has US state sponsorship. It is anticipated that reciprocal jurisdiction status will be afforded to class D and domestic insurers but will not apply to the insurance industry as a whole. Any policies and legislation required for implementation will be developed in close partnership with industry.
9. Convergence – Cayman continues to see increasing convergence between the investment funds and reinsurance sectors. Given Cayman is the leading hedge fund domicile it is no surprise, that asset managers are increasingly looking to Cayman for their reinsurance structures. Apart from the obvious familiarity with Cayman's regulatory and business environment, asset managers are attracted to the jurisdiction for its ability to facilitate speed to market without compromising or reducing regulatory oversight.
10. Why Cayman – Cayman has a long history of economic and political stability and it is committed to tax neutrality and certainty. CIMA is a sophisticated, approachable and responsive regulator that is embedded in the international space. The capital framework allows optimisation for complex transactions. The connectivity and closely connected marketplace provides responsiveness and superior service.