Cayman creates new Class C reinsurance entity for catastrophe bond issuers
- Abolishes the distinction between unrestricted and restricted Class B licences, instead providing for three new sub-classes of Class B licence for non-domestic insurers, based on the percentage of net premiums originating from the insurer’s related business;
- Tightens the definition of the carrying on of “insurance business”, in particular removing references to contingent contracts for money;
- Establishes more comprehensive annual return reporting requirements for licensed insurers, agents, managers or brokers;
- Regulates transfers or the amalgamation of long-term business between licensed insurers, including requiring the approval of the Cayman Islands Monetary Authority (“CIMA”);
- Provides for the settlement of disputes in relation to contracts of domestic insurance by way of arbitration, even in circumstances where there is no arbitration agreement in place; and
- Clarifies and significantly strengthens the penalties for non-compliance with the law, in order to provide a real and effective deterrent to the carrying on of insurance business without a licence, or in contravention of the terms of the relevant licence or of the law.
Published December 19, 2012
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