Insurance Act, 2010
Summary
The foundational law regulating insurance and reinsurance business in the Cayman Islands.
Sources
Insurance_Act, 2010.pdf, Insurance(Amendment_and_Validation)_Act, _2024.pdf
Last Updated
2026-04-27
The Insurance Act provides a comprehensive framework for the licensing and supervision of insurance-business, including insurers, reinsurers, and intermediaries.
Licence Categories
The Act defines several classes of insurer licences:
- Class A: Permitted to carry on domestic insurance business.
- Class B: Permitted to carry on international insurance business (captives). This class is further subdivided:
- B(i): At least 95% of net premiums originate from the insurer's related business.
- B(ii): Over 50% of net premiums originate from related business.
- B(iii): 50% or less of net premiums originate from related business.
- Class C: Permitted to carry on insurance business involving the provision of reinsurance through the issuance of insurance-linked securities.
- Class D: Permitted to carry on reinsurance business and such other business as may be approved by cima.
Intermediaries and Managers
The Act also regulates:
- Insurance Agents: Solicit domestic business on behalf of an insurer.
- Insurance Brokers: Arrange insurance contracts for prospective policyholders.
- Insurance Managers: Provide management services to insurers (often required for Class B, C, and D insurers).
Compliance and Solvency
- Solvency Margin: Insurers must maintain a prescribed margin of solvency (assets exceeding liabilities).
- Annual Audit: Accounts must be audited annually by a CIMA-approved auditor.
- Actuarial Valuation: Required for long-term (life) insurance business.