New Cayman Insurance Law In Force

By ExpatBriefing.com Editorial 11 December, 2012

New legislation has entered into force in the Cayman Islands to create a conducive regulatory environment to foster the development of the reinsurance sector.

The Cayman Islands Insurance Law 2010, which was passed by the island's legislative assembly in September and has now entered into force, creates two new categories of licenses:

Class C - in relation to the provision of reinsurance arrangements financed through the issuance of catastrophe bonds and similar instruments; and
Class D - in respect of the carrying on of reinsurance business.

According to the Insurance Managers Association of Cayman (IMAC), the law will have a broader impact on the islands' insurance industries. The law also:

The amendments have been made in conjunction with substantial amendments to the Cayman Islands Immigration Law, which are intended to incentivize reinsurers and fund administrators to relocate to, and establish a substantial physical presence in, the Cayman Islands.

The Immigration Law amendments introduces new ten-year work permits for executives and managers in the reinsurance industry and free work permits for various categories of administrative staff for their first five years of residence in the islands. In addition, Permanent Residence with the Right to Work will now be available to approved persons who make a substantial investment in a home or other developed real estate.

IMAC is optimistic that the introduction of the new categories of licenses, coupled with the immigration incentives, will foster substantial growth in the size of the Caymans reinsurance sector in the near term.

A comprehensive report in our Intelligence Report series which studies the 20 main offshore jurisdictions which offer captive insurance regimes is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report11.asp

Tags: Expatriates | Compliance | Insurance | Investment | Law | Insurance | International Financial Centres (IFC) | Cayman Islands | Offshore | Legislation | Penalties |

 





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