CAYMAN ISLANDS MONETARY AUTHORITY
EXCERPTS FROM THE INSURANCE LAW, 1979 (1995 REVISION)
Pertaining to Offshore Insurance Companies
Persons desiring to carry on insurance business from within the Islands may make
application in writing to the Cayman Islands Monetary Authority for the grant of a Class
"B" Insurers Licence.
- Application shall be in the form prescribed and requires, inter alia, a detailed
business plan, five years financial projections, personal details and references for
proposed Directors and Shareholders, and confirmation of appointment of a licensed
- The application must be accompanied by the prescribed fee of CI$5,000.00 (US$6,097.56).
- Any decision to refuse to grant a licence is final and conclusive and not subject to
appeal or review.
- It is a condition of every licence that the licensee shall notify the Head of Insurance
Supervision forthwith of any change in the information supplied in the application.
- An Unrestricted Class "B" Licence permits an exempted insurer to carry on
insurance business other than domestic business from within the Islands.
- A Restricted Class "B" Licence permits an exempted insurer only to accept
insurance business other than domestic business from its member or members or such other
persons as may be specifically approved by the Cayman Islands Monetary Authority.
- Minimum net worth for an Unrestricted Class "B" Licence is as follows:
A company effecting general insurance business US$120,000
A company effecting long-term business US$240,000
A company effecting both general and long term business US$360,000
- Minimum net worth for a Restricted Class "B" Licence is determined by the Head
of Insurance Supervision after reviewing the application.
- Every holder of a current licence shall on or before the 15th day of January
each year pay to the Cayman Islands Government an annual fee of CI$5,000.00 (US$6,097.56).
- It is the duty of the Head of Insurance Supervision
- to maintain a general review of insurance practice in the islands and to ensure that
every licensee is carrying on business in a satisfactory manner and is in a sound
financial position, and
- to examine and make recommendations to the Governor with respect to applications for
- Every licensed insurer shall nominate at least one person resident in the Islands
approved by the Cayman Islands Monetary Authority who is authorized to accept on its
behalf service of process in any legal proceedings on its behalf and any legal notices
required to be served on it.
- Every insurer shall appoint an Insurance Manager resident in the Islands and maintain
permanently at a designated office in the Islands full and proper records of its business
- A licensed insurance manager shall use his best endeavors to carry on insurance and
re-insurance business only with insurers of sound reputation. In the event that a manager
feels cause for concern regarding the probity or soundness of any insurer or re-insurer
with whom he is carrying on business, he shall report the same to the Head of Insurance
- Licensed insurers may only carry on insurance business in accordance with the
information given in the Business Plan included with their licence applications. Any
proposed change in the nature of such business requires the prior approval of the Cayman
Islands Monetary Authority. Such insurers shall furnish annually to the Authority a
certificate of compliance with this provision, in the prescribed form, signed by an
independent approved auditor or a licensed insurance manager.
- Every licensed insurer shall prepare annual accounts in accordance with generally
accepted accounting principles, audited by an independent, local auditor.
- Every insurer who is carrying on long term business shall prepare tri-annually an
actuarial valuation of its assets and liabilities, certified by an actuary.
- Every insurer carrying on both general and long-term business shall keep separate
accounts in respect of the long-term business.
- A licensed Class "B" insurer may not carry on domestic business.
- Every licensed Class "B" insurer shall furnish to the Cayman Islands Monetary
Authority within six months of the end of its financial year audited accounts prepared by
an independent auditor and a Certificate of Compliance.
- Where the Head of Insurance Supervision is of the opinion that a licensee is carrying on
business likely to be detrimental to the public interest or its policyholders, or is in
contravention of this Law, he may require such licensee to immediately take steps to
rectify the matter or he may suspend the licence pending a full enquiry into the
licensees affairs. Upon receipt of the report of such an enquiry, the Governor may,
if necessary, revoke a licence without compensation to the licensee.
- No company licensed under this Law is required to be licensed under the Local Companies
(Control) Law or the Trade and Business Licensing Law.
Further inquiries may be directed to:
Mr. William McCullough
Head of Insurance Supervision
Cayman Islands Monetary Authority
P. O. Box 10052
Cayman Islands, BWI
A copy of the Insurance Law,1979 (1995 Revision) and The Insurance (Forms) Regulations,
1980 are available at a cost of US$14.51 (cheques payable to "Cayman Islands
Government") by writing to:
The Clerk of the Legislative Assembly
P. O. Box 890GT
Cayman Islands, BWI