Governance, Risk and Compliance - The Cayman Islands Insurance Industry

Published: Aug, 2015 | Pages: 40 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)

Synopsis
Timetric’s 'Governance, Risk and Compliance – The Cayman Islands Insurance Industry' report is the result of extensive research into the insurance regulatory framework in the Cayman Islands. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operations of insurance and reinsurance companies and intermediaries.

The report brings together Timetric’s research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, recent and upcoming changes in regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

Summary
The report provides insights into the governance, risk and compliance framework pertaining to insurance industry in the Cayman Islands including:

• An overview of the insurance regulatory framework in the Cayman Islands

• The latest key changes and changes expected in the insurance regulatory framework in the country

• Key regulations and market practices related to different types of insurance product in the country

• Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in the Cayman Islands

• Key GRC parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency requirements, reserve requirements, and investment regulations

• Details of the tax and legal systems in the country

Scope
This report covers details of insurance regulatory framework in the Cayman Islands.

• The report contains details of rules and regulations governing insurance products and insurance entities.

• The report lists and analyzes key trends and developments pertaining to the country's insurance regulatory framework.

• The report analyzes rules and regulations pertaining to the establishment and operation of insurance business in the country.

• The report provides details of taxation imposed on insurance products and companies.

• Details of the country's legal system are also covered in the report.

Reasons To Buy
Gain insights into the insurance regulatory framework in the Cayman Islands.

• Track latest regulatory changes and expected changes impacting the Cayman Islands insurance industry.

• Gain detailed information about the key regulations governing establishment and operation of insurance entities in the country.

• Understand key regulations and market practices pertaining to various types of insurance product.

Key Highlights
The Cayman Islands insurance industry is regulated by the Cayman Islands Monetary Authority.

• Composite insurance is permitted in the Cayman Islands.

• Non-admitted insurance is not permitted in the Cayman Islands insurance industry.

• 40% FDI is permitted in the Cayman Islands insurance industry.

• Since June 2013, an additional stamp duty was introduced on property insurance premium at a rate of 2%, in addition to the existing rate of KYD12.0 (US$14.4) per policy.

 Table of Content

1 Introduction
1.1 What is this Report About?
1.2 Definitions

2 Governance, Risk and Compliance
2.1 Legislation Overview and Historical Evolution
2.2 Latest Changes in Regulations
2.3 Legislation and Market Practice by Type of Insurance
2.3.1 Life insurance
2.3.2 Property insurance
2.3.3 Motor insurance
2.3.4 Liability insurance
2.3.5 Marine, aviation and transit insurance
2.3.6 Personal accident and health insurance
2.4 Compulsory Insurance
2.4.1 Motor third-party liability insurance
2.4.2 Marine liability insurance
2.4.3 Professional indemnity insurance for insurance brokers and insurance managers
2.4.4 Health insurance
2.4.5 Liability insurance for oil pollution by ship
2.5 Supervision and Control
2.5.1 International Association of Insurance Supervisors (IAIS)
2.5.2 Cayman Islands Monetary Authority
2.6 Non-Admitted Insurance Regulations
2.6.1 Overview
2.6.2 Intermediaries
2.6.3 Market practices
2.6.4 Fines and penalties
2.7 Company Registration and Operations
2.7.1 Types of insurance organization
2.7.2 Establishing a local company
2.7.3 Foreign ownership
2.7.4 Types of license
2.7.5 Capital requirements
2.7.6 Solvency margins
2.7.7 Reserve requirements
2.7.8 Investment regulations
2.7.9 Statutory return requirements
2.7.10 Fee structure
2.8 Taxation
2.8.1 Insurance premium or policy taxation
2.8.2 Withholding taxes on premium paid overseas
2.8.3 Corporate tax
2.8.4 VAT
2.8.5 Captives
2.9 Legal System
2.9.1 Introduction
2.9.2 Access to court
2.9.3 Alternative dispute resolution (ADR)

3 Appendix
3.1 Methodology
3.2 Contact Timetric
3.3 About Timetric
3.4 Timetric’s Services
3.5 Disclaimer

List Of Tables
Table 1: Insurance Industry Definitions
Table 2: Cayman Islands – Insurance Regulatory Framework Key Features
Table 3: Cayman Islands – Life Insurance Regulatory Framework
Table 4: Cayman Islands – Property Insurance Regulatory Framework
Table 5: Cayman Islands – Motor Insurance Regulatory Framework
Table 6: Cayman Islands – Liability Insurance Regulatory Framework
Table 7: Cayman Islands – Capital Requirements for Insurers
Table 8: Cayman Islands – Minimum and Prescribed Capital Requirement for Class B and Class C insurers
Table 9: Cayman Islands – Minimum Capital Requirement for Class D insurers
Table 10: Cayman Islands – Prescribed Capital Requirement Class D insurers
Table 11: Cayman Islands – Fee Structure for Insurers

List Of Figures
Figure 1: Cayman Islands – Insurance Supervision and Control at Various Levels
Figure 2: Cayman Islands – Insurance Regulatory Frameworks for Company Registration and Operation