Cayman Islands sees rapid rise in captive insurance formations in Q3

Cayman Islands Captive Insurance Boom Accelerates in Q3: 11 New Licenses Signal Record-Breaking Year

In the high-stakes world of alternative risk management, the Cayman Islands is firing on all cylinders, with a surge in captive insurance formations underscoring its unchallenged dominance as a global powerhouse. The Cayman Islands Monetary Authority (CIMA) greenlit 11 new international insurance licenses in the third quarter of 2025 alone—a brisk clip that’s propelled the jurisdiction past last year’s full-year total and into uncharted growth territory. For multinational corporations eyeing cost efficiencies amid volatile commercial markets, this isn’t just numbers on a ledger; it’s a beacon for self-insurance strategies that could redefine corporate resilience.

The latest quarterly stats, released October 21, 2025, by the Insurance Managers Association of Cayman (IMAC), paint a picture of unrelenting momentum. Of those 11 approvals—five Class B(i) single-parent captives and six Class B(iii) reinsurers—the licenses reflect a broad appetite across industries, from healthcare to construction, where traditional carriers are hiking premiums and tightening terms. Year-to-date, CIMA has issued 32 new licenses, eclipsing the first nine months of 2024, with 19 applications still in the pipeline and five more approved in principle. If that holds, 2025 could shatter the 42-license record from 2024, cementing Cayman’s edge over rivals like Bermuda and Vermont.

A Snapshot of Cayman’s Captive Landscape (Q3 2025)

Source: IMAC/CIMA data

The roots of this uptick dig deep into a hardening commercial insurance market, where capacity shortages and escalating rates—up 20-30% in some lines like cyber and directors’ & officers’ liability—have pushed more firms toward captives for tailored coverage. Cayman’s allure? A nimble regulatory framework under CIMA, zero corporate tax, and a robust ecosystem of managers, auditors, and legal pros that slashes setup times to under three months. North America remains the risk epicenter, accounting for 90% of premiums, but emerging footprints in Asia-Pacific and Europe are fueling diversification.

IMAC Chair Kieran Mehigan didn’t mince words in a post-release statement: “The consistent increase in new licensees reflects continued confidence in the jurisdiction’s regulatory framework, service excellence, and the stability that Cayman offers as a leading global insurance domicile.” Echoing that, CIMA’s George Kamau highlighted a boom in portfolio insurance companies (PICs) for workers’ comp and liability, with construction leading the charge—four of five new PICs in late 2024 tied to that sector. On the reinsurance front, whispers of a new Class B(iv) category for mid-tier players could supercharge 2026 inflows, catering to firms scaling premiums beyond $50M.

The captive community is abuzz with cautious optimism. At a recent IMAC webinar, industry vets like PwC’s Ricardo Agrella pointed to crypto-risk captives as the next frontier, with Cayman’s scalability ideal for insuring digital wallets amid regulatory flux. “Cayman’s not just surviving the hard market—it’s thriving on it,” noted one reinsurer exec in a LinkedIn thread that’s garnered 500+ reactions, praising the domicile’s quick pivot to hybrid structures blending captives with cat bonds. Skeptics, however, flag talent shortages and U.S. FATCA scrutiny as hurdles, though IMAC’s push for new manager licenses (up 13% in 2024) aims to plug those gaps.

For U.S. executives—where 60% of Cayman’s captives originate—this Q3 spike resonates on multiple fronts. Economically, it slashes bottom lines: Captives can trim premiums by 15-25% through direct access to reinsurance, injecting $51B in retained capital back into U.S. firms amid inflation’s squeeze. Lifestyle perks? Multinationals like those in food/beverage and transport (key growth drivers) gain tailored coverage for supply-chain snarls, freeing treasuries for expansion. Politically, it bolsters Cayman’s rep as a compliant haven (full OECD transparency), dodging the “tax haven” stigma while navigating U.S. elections’ trade rhetoric. Technologically, innovations like blockchain for claims processing (piloted in 2024) position Cayman as a fintech-insurance nexus, appealing to Silicon Valley risk managers.

The broader captive cosmos—6,000 entities worldwide—owes a third to Cayman, Bermuda, and Vermont, but the islands’ Q3 velocity (11 licenses in 90 days) outpaces peers, per Captive International rankings. IMAC’s annual Cayman Captive Forum (December 2-4 at Ritz-Carlton) will unpack this further, with sessions on PICs and crypto captives drawing 500+ attendees.

As pipelines swell (24 new licenses in H1 2025 alone), Cayman’s trajectory points to 50+ approvals by year-end—a 20% leap that could redefine the domicile’s $173B asset fortress. In a world of rate shocks and geopolitical jitters, this rapid rise isn’t hype; it’s the new normal for savvy risk bearers.

Looking ahead, with Class B(iv) on the horizon and AI-driven underwriting trials, Cayman could capture 40% of global captives by 2030, turning tax-neutral turf into a risk-management mecca. For now, it’s clear: The islands aren’t just hosting formations—they’re fueling futures.

By Sam Michael

Follow and subscribe to us to increase push notifications.

Cayman Islands captive insurance Q3 2025, CIMA new licenses 2025, IMAC captive growth, Cayman Class B insurers, captive insurance market rise, Cayman reinsurance surge, global captive domiciles 2025, Cayman Captive Forum, single-parent captives Cayman, insurance market hardening 2025