As per 2012 the written premium of health insurance in the Cayman Islands valued US$196.3 million, growing at a CAGR of 8.7% since 2008. By 2017 this number is expected to grow to US$251.4 million, growing at a CAGR of 5.1%. Accounting for 30% of the total GDP the overall insurance industry in the Cayman Islands is a central part of the country’s financial sector. According to Timetric the recovery in the economy, evolving regulatory environment, availability of experienced work force combined with the low-cost advantage for running a business will drive the growth of the insurance industry towards 2017.
Introduction of new insurance law will support growth
In 2010 the Cayman Islands Monetary Authority (CIMA), revised the insurance law with the aim to strengthen the supervisory mechanism and create a better platform for the growth of insurance. In 2013 CIMA introduced a new regulation to the law allowing segregated portfolio insurers (SPC) to form one or more cell companies called portfolio insurance companies (PIC). This is expected to attract further investment in the insurance industry towards 2017.