Enhanced regulations are currently being put into place relating to the Cayman Islands Insurance Law 2010, which was passed early last year. The amendments will likely include immigration incentives for the reinsurance industry, such as the introduction of ten year work permits for senior executives within the industry, reduced work permit fees and the introduction of a streamlined process that will speed up work permit applications for the sector.

Premier and Minister of Finance, McKeeva Bush, announced at the opening of this year’s Cayman Captive Forum the intent to attract further reinsurers to the Cayman Islands through the revision of its immigration regime and the enactment of new legislation that will allow business to flourish.

Simon Owen, Managing Director of Hyperion Risk Solutions (Cayman) Limited, the Cayman Islands based (re)insurance broker and risk consultancy firm welcomed the moves.

“This announcement offers yet another example of the Cayman Islands' appetite to expand its already successful financial services industry,” he said. “The Cayman Islands is already a leading investment fund jurisdiction with around 10,000 funds being domiciled here. Furthermore, from an insurance standpoint, Cayman is home to 730 regulated captives and insurance entities with a combined premium volume of $9.59billion. The success of Greenlight Re, who chose to headquarter its operations in Grand Cayman, is yet another glowing endorsement of the domicile. The concessions being offered by the Government provide even greater long-term stability to reinsurers looking to either form or re-domicile to a well-regulated and pragmatic jurisdiction."

Mr Owen added: "The ever evolving overlap between the capital markets and the reinsurance industry through the use of catastrophe bonds and other insurance-linked securities clearly shows the need for jurisdictions that have a sophisticated legislative framework in place and service providers that have a significant understanding of both sectors."