Apr 2025

If last year’s first ReConnect conference embodied a successful proof of concept, the second iteration has not only maintained momentum, but leveraged last year’s foundation to propel towards greater success. The total number of delegates in attendance rose to over 650 and the number of international attendees increased to over 50% visiting from over eight different overseas jurisdictions (and many more US states), highlighting the increasing prominence of the Cayman Islands reinsurance industry on the international stage. Whilst last year’s conference provided a fantastic introduction to reinsurance in Cayman, ReConnect round two was an opportunity for delegates to delve deeper into the details.

Conyers’ Insurance team highlights the 10 main takeaways from the conference below:

1. Myth-busting Capital Requirements

  • Actuarial experts took the opportunity to dispel recent noise in the media and address head-on the misconception that the flexibility of Cayman’s capital regime results in weaker models or lower capital levels. In addition to discussing the technicities of the manner in which capital levels are calculated and detailing the various internationally recognised methodologies which are utilised by Cayman reinsurers, the panel reiterated how Cayman’s principle based regulation involves a constant and substantive dialogue with the Cayman Islands Monetary Authority (CIMA) as the regulator – resulting in a depth and breadth of connection and communication with the regulator that is greater than in most other jurisdictions.
  • The panellists set the record straight by highlighting lesser known strengths of CIMA’s regulatory system, the openness of CIMA’s communications with other regulators which is supported by over 65 information sharing agreements with regulators around the globe, participation in supervisory colleges as part of Cayman reinsurers subject to group supervision, and ongoing reporting to and regular inspections by the International Association of Insurance Supervisors. As part of the preparation of the annual actuarial report by an approved actuary, many were surprised to learn that CIMA imposes an extra layer of rigor whereby a second actuary conducts an independent peer review of the actuarial report before it is submitted to CIMA, a feature that is unique to the Cayman Islands.

2. Hotly Awaited Update on NAIC QJ Status

  • CIMA continues to develop its solid relationship with the National Association of Insurance Commissioners (NAIC) in its pursuit of Qualified Jurisdiction (QJ) status. Kara Ebanks, the head of CIMA’s insurance supervision division, affirmed that achieving QJ status remained a top priority and that work with the US state sponsoring regulator is on-going. QJ status is seen as a natural evolution to Cayman’s growing reinsurance industry, particularly given that Cayman’s reinsurance industry is so pre-dominantly US facing.
  • Many speakers highlighted the importance of QJ status for both the life & annuity and P&C sectors and provided their full support for CIMA’s pursuit of this initiative, underlining the softer benefits of international recognition that QJ status will bring once granted. Continue to watch this space!

3. US Regulators on the Rock

  • The attendance of no less than four US state insurance commissioners from Wisconsin, Tennessee, Oklahoma and Utah was a huge bolster for the standing of the conference. In addition to their insightful panel participation alongside Kara Ebanks, the Head of CIMA’s Insurance Division, ReConnect provided the Commissioners with an opportunity to have in depth discussions with CIMA representatives and increase their own understanding of the regulatory environment and procedures in Cayman which we hope they can relay to their peers in the US.

4. Transparency is Key

  • A common theme raised throughout the conference was the importance of transparency and there was, yet again, some myth-busting done to combat any lingering misconceptions that Cayman’s regulatory regime is a closed black box. Specifically addressed, for example, was transparency in connection with new reinsurance transactions coming to the Cayman market. Emphasis was placed on the fact that CIMA discusses all of these transactions (affiliated and unaffiliated) with each cedant’s regulator and ensures approvals are in place where required prior to CIMA finalising their approval process. Emphasised also, was the fact that while financials of Cayman reinsurers may not be published to the general public in all cases, this information is available to all appropriate stakeholders to a reinsurance transaction, reinsurers submit quarterly and annual financial statements to CIMA, and that per an ever increasing network of MOUs between CIMA and US State regulators we can assume this and other information can and will be shared by CIMA on request. Also emphasised was the fact that the vast majority of reinsurance transactions booked in Cayman have assets held in the cedant’s jurisdiction and under the oversight of the relevant US regulators which attract US asset eligibility criteria. Accordingly, for the Cayman uninitiated, these discussions hopefully provided some helpful insight to combat any notions that all assets sit in the Cayman Islands outside the grasp of US cedants to support their obligations to underlying insureds.

5. Navigating Capital Partnerships

  • Building on the “perfect marriage” between the investment funds and reinsurance industry discussed at last year’s ReConnect, two panels were dedicated to the innovative ways the reinsurance industry is raising capital and attract investment. Whilst reinsurance sidecars have been a common structure in the U.S. P&C industry for many years, their use has only recently become more prevalent in the life and annuity industry, presenting an opportunity for Cayman to increase its share of the sidecar market. In addition to the regulatory advantages of establishing a sidecar reinsurer in the Cayman Islands, panellists highlighted the wide variety of menu options in Cayman which are suited to structuring the ownership of controlling and economic interests in a sidecar, from segregated portfolio companies and portfolio insurance companies, to LLCs, partnerships and orphan trusts. The Cayman Islands as the domicile of choice for these structures is particularly appealing to institutional and other sophisticated investors who are already extremely familiar with the available vehicles, proportionate regulation, and tax neutrality offered in the Islands.

6. Existing Expertise

  • It was apparent that the rapid growth within the Cayman (re)insurance industry has been met with expertise entrenched in the financial services sectors (accountants, lawyers, bankers, insurance managers, etc.). These existing services providers, coupled with the significant increase in actuarial expertise on island has created an ecosystem conducive for the establishment of larger, sophisticated reinsurers – all indicative of an evolving, growing and maturing market.

7. Innovation and Thought Leadership

  • Cayman’s dynamic and diverse regulatory environment has facilitated a body of thought leadership on the island on matters of innovation such as AI, insurtech and digital assets. As a result, Cayman is well placed on the cutting edge of the ever-evolving international (re)insurance industry now and for years to come.

8. Enhancing the Regulatory Menu

  • Dr Dax Basdeo, Chief Officer of the Cayman Islands Ministry of Financial Services and Commerce, outlined a number of legislative enhancements in the pipeline, including: (1) a new licence category for specialist reinsurance brokers; (2) a new insurer licence category for Class B(iv) insurers with annual premium in excess of US$20 million to ensure that the regulatory approach is proportionate to the size and complexity of the (re)insurer’s business; and (3) proposed amendments to the regulatory policy governing the fitness and propriety of key individuals and senior managers of (re)insurers. These proposed changes are a positive indication that progress and increasing maturity of systems and regulations remain a core focus for the jurisdiction and speak to Cayman’s awareness of the importance of robust regulatory guardrails for long term investment and sustained growth in the sector.

9. The Future is Bright

  • Many speakers and delegates were focused on looking forward and out across the global landscape to see what 2025 and beyond may bring. In addition to a record number of new licensees in 2024, the reinsurance sector in the Cayman Islands earned over US$25.2 billion in premium (accounting for over 60% of premium earned by the insurance sector as a whole) and held over US$94 billion in assets under management.
  • As the sector continues to grow in size and sophistication with ever increasing international regulatory standards, the need for a corresponding increase in the depth and breadth of resourcing at CIMA was at the forefront, with a consensus that the government and CIMA are closely focused on increasing the number of technical reinsurance subject matter specialists in CIMA’s insurance division as well as improving efficiency through automation and investment in technology and systems.

10. Growth of the Conference

  • The growth of the (re)insurance industry in Cayman in terms of size/sophistication of participants was mirrored by the growth of the conference itself over the last year and the quality of the attendees is worth noting. The popularity of the conference for non-Cayman based reinsurance professionals in particular highlights the increasing attractiveness of Cayman as a premier offshore hub for the reinsurance industry.
  • With impressive panel contributions from the Cayman Islands government, regulator, service providers and other stakeholders expanding on Cayman’s growing reinsurance industry, feedback from delegates was resoundingly positive, who are sure to return and spread the word to others for ReConnect 2026!