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Cayman finds support for special status

Some 450 delegates were registered for [Re]Connect, the reinsurance conference hosted in Grand Cayman by the Cayman International Reinsurance Companies Association

The Cayman Islands has the support of a US state in their quest for Qualified Jurisdiction status with the National Association of Insurance Commissioners, according to an article from law firm, Conyers, published in Mondaq.

The article, co-written by several Cayman Island office lawyers, discusses takeaways from Cayman’s recent first reinsurance conference, [Re]Connect, hosted by the Cayman International Reinsurance Companies Association. CIRCA is the industry-promoting group for Cayman Islands commercial reinsurers.

The article also highlighted Cayman’s pursuit of the insurtech business. It said Cayman was well-positioned to facilitate Insurtech innovation in insurance.

Qualified Jurisdiction status would make Cayman-domiciled insurers and reinsurers eligible for reduced collateral requirements under the NAIC’s Credit for Reinsurance Model Law and Regulations.

The NAIC, the US standard-setting and regulatory support organisation of the chief insurance regulators of the 50 states, the District of Columbia and five US territories, has included Bermuda on the list of Qualified Jurisdictions since the list was first compiled in 2015.

Bermuda was one of only seven jurisdictions with the Qualified Jurisdiction status. France, Germany, Ireland, Japan, Switzerland and the United Kingdom were the others.

In 2019, the NAIC reaffirmed Bermuda's status, but also designated the island a Reciprocal Jurisdiction effective January 2020, giving Bermuda ‘covered agreement’ status with the United States.

As a result, insurers and reinsurers licensed and domiciled in Bermuda are not required to post reinsurance collateral, putting them on an equal footing with their EU and UK counterparts.

At that time, Bermuda was one of three jurisdictions with Reciprocal Jurisdiction status. Japan and Switzerland were the others.

Meanwhile, the Cayman reinsurance conference attracted 450 industry professionals, who heard about Cayman's growing reinsurance business.

André Ebanks, the Deputy Premier, outlined the country’s financial services history, including the convergence of the reinsurance and investment fund sector.

He later told the Cayman Compass that the event marked a significant milestone for the Cayman Islands.

He said: “It’s clear that while reinsurance is not new to Cayman, a variety of factors have resulted in us becoming a very attractive jurisdiction.”

The article noted: “Several panellists with established reinsurers in Cayman praised the efficient, interactive and commercial licensing process offered by CIMA.

“With $360 billion of new annuities written in the US last year, there is a wealth of opportunities for new entrants to the offshore reinsurance market, and Cayman is primed to absorb its fair share of this growth.”

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Published April 30, 2024 at 7:59 am (Updated April 30, 2024 at 7:13 am)

Cayman finds support for special status

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