CAPTIVE INSIGHT
CI: What does CIMA do to ensure
Cayman remains a serious option
for ILS issuers in a competitive
market and how does CIMA
approach this sector?
CIMA’s Class ‘C’ insurer category
captures entities that provide
reinsurance through the issuance of
insurance-linked securities such as
Cat Bonds, sidecars, collateralised
reinsurance or similar instruments.
Among all ILS structures in the
Cayman Islands, Cat Bonds dominate
the market. CIMA understands the
sophisticated and time-sensitivity
nature of the ILS structures,
and has introduced a fast-track
approval process for Cat Bonds
where applications are processed
within 5-10 business days. This is a
testament to CIMA’s ongoing efforts
to accommodate sophistication
and innovation within its regulatory
philosophy of using a risk-based and
proportionate approach to ensure
that our licensees are appropriately
supervised. CIMA has also introduced
procedures and issued guidance
on audit-waiver requests for Class
‘C’ insurers. In addition, CIMA
representatives attend the SIFMA’s
Insurance and Risk-Linked Securities
(IRLS) Conference every year to meet
with the representatives of Cayman’s
existing and potential Class ‘C’
insurers.
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