Cayman’s Reinsurance Boom Amid NAIC Status Pursuit

In the third quarter of 2026, the Cayman Islands granted eight new international insurer licenses, which brings the total number of licenses issued so far this year to 28 and the overall number of Class B, C, and D insurance companies to 720. This total takes into account licenses that were surrendered or cancelled during the period, and these companies wrote approximately $62 billion in premiums and held $203 billion in total assets.

Compared to the start of the year, the premium base has increased by $11 billion, while total assets have risen by $27 billion. Reinsurance is becoming a larger part of the industry’s activity, with Cayman’s reinsurance companies holding $101.5 billion in assets at the end of 2025, representing a 341% increase since 2020, according to data from the Cayman Islands Monetary Authority (CIMA).

Cayman’s reinsurance industry expansion

Of the eight licenses issued in the third quarter, seven were categorized as Class B(iii), which includes third-party writers and many of Cayman’s reinsurance platforms. Additionally, three new portfolio insurance companies (PICs) were established during the quarter. PICs operate as separate entities within a single corporate structure, allowing insurance groups to manage distinct risk pools, including intra-group reinsurance, without needing to establish separate entities for each.

PICs provide a flexible structure for insurance groups to organize their business, enabling them to segregate risks and manage their portfolios more efficiently. The latest licensing data indicates that Cayman’s annual licensing pace is slightly lower than in 2025, when CIMA issued 42 new licenses. As of now, the total for 2026 stands at 28, with 11 applications currently under review and another group approved in principle.

According to IMAC chair James Trundle, the pipeline of new license applications remains strong. “Cayman’s international insurance industry continues to demonstrate resilience, stability and sustained growth,” he said. “The steady increase in new licensees, alongside significant growth in premiums written and total assets, reflects the continued confidence that international businesses place in our jurisdiction.”

Seeking NAIC qualified jurisdiction status

The latest licensing figures come as the Cayman Islands’ application for NAIC qualified jurisdiction status (QJS), submitted in August 2026, is still under review. This development has significant implications for cross-border reinsurance transactions, as approximately 90% of Cayman’s reinsurance business comes from the US and Canada, according to CIMA.

Under the NAIC framework, QJS allows eligible reinsurers in approved jurisdictions to apply for certified reinsurer status with US state regulators. This certification can reduce the collateral that Cayman-based reinsurers must post when transacting with US ceding insurers, which is currently set at 100% for offshore reinsurers outside a qualified jurisdiction. The reduction in collateral is tied to the reinsurer’s financial strength rating, with individual state regulators making the final determination.

Currently, only seven jurisdictions have NAIC qualified jurisdiction status: Bermuda, France, Germany, Ireland, Japan, Switzerland, and the UK. If approved, the Cayman Islands would be the first new entrant to this group. Bermuda has since been upgraded to reciprocal jurisdiction status, which is a higher tier than QJS and allows qualifying reinsurers to transact with US cedants without posting any collateral.

CIMA views the QJS application as an opportunity to align the Cayman Islands’ reinsurance regulatory framework with US supervisory expectations, rather than a departure from existing practices. As CIMA noted when announcing the application, QJS “would formally recognize the Cayman Islands’ reinsurance regulatory framework within the NAIC process and further align it with US supervisory expectations.” The timeline for approval is uncertain, as QJS applications involve ongoing engagement between the applicant jurisdiction and NAIC reviewers, a process that has historically taken several years for other jurisdictions.