Insurance (Portfolio Insurance Companies) Regulations, 2015

Portfolio Insurance Companies (PICs) offer a unique structure in Cayman, allowing a segregated portfolio (cell) of an insurance SPC to incorporate a separate legal subsidiary to carry on insurance business.

Key Features

• Separate Legal Personality: Unlike a standard segregated portfolio, a PIC is a separate body corporate. This allows it to enter into contracts, such as reinsurance treaties, in its own name.
• Registration: A PIC must register with cima rather than obtaining a full insurance licence of its own, provided its controlling insurer is licensed.
• Controlling Insurer: Every PIC must have a controlling relevant insurer (the SPC) that provides oversight.

Capital and Solvency

PICs are subject to their own capital requirements (MCR and PCR) based on the volume and nature of their business:

• Related Business (≥95%): MCR/PCR starts at US$100,000 (General) or US$200,000 (Long-term).
• Unrelated Business (>50%): MCR/PCR starts at US$150,000 (General) or US$300,000 (Long-term).
• Risk-Based Calculation: For PICs with significant unrelated business or high premiums (≥US$20m), the PCR is calculated using a risk-based formula similar to the standard insurance-capital-and-solvency-classes-b-c-and-d-insurers-regulations-2018.

Ongoing Obligations

• Insurance Manager: A PIC must appoint a licensed insurance manager.
• Annual Reporting: PICs must submit audited financial statements, an annual declaration, and an actuarial valuation (unless exempt) within six months of their financial year-end.
• Fees: Registration and annual fees are now governed by the broader insurance-applications-and-fees-regulations (as of the 2024 amendment).

Related pages

• insurance-business
• insurance-act-2010
• corporate-structures
• cima