The Cayman Islands continues to reinforce its position as one of the world's most sophisticated and respected captive insurance domiciles. In a period marked by evolving risk environments, shifting global regulations and increasing convergence between capital markets and the (re)insurance sector, Cayman's combination of innovation, stability and depth of expertise continues to set it apart.
The Cayman Islands is poised to achieve a record number of new international insurance licences by the end of 2025. Cayman Islands Monetary Authority's (CIMA's) reporting through the third quarter highlights strong momentum in approvals, with additional applications already in progress. Growth is being seen across multiple areas: The group captive segment continues to expand, reinsurance formations are increasing, and the number of new pure captives is rising at a measured pace.
Interest is also broadening to include reinsurance sidecars, transformers and other alternative risk vehicles. As capital markets and the reinsurance industry become more closely integrated, Cayman's established role as a leading global financial centre — particularly its reputation as the world's largest hedge fund domicile — makes it an increasingly attractive jurisdiction for innovative capital-backed solutions.
Collaboration between regulators, industry bodies and government ensures that Cayman remains at the forefront of international best practices. This approach supports a regulatory system that is both flexible and rigorous, enabling Cayman to sustain its reputation as a premier global domicile for captive insurance.
How Cayman maintains its global leadership.
Cayman's enduring appeal lies in the combination of proportionate, risk-based regulation and a deep reservoir of expertise within its financial services sector. The jurisdiction is home to a highly skilled network of service providers — insurance managers, actuaries, auditors, lawyers and investment specialists — who collectively support the needs of a sophisticated international client base.
Political and economic stability underpins the jurisdiction's long-term credibility. Cayman is well recognised for its transparency and cooperation with global regulatory and tax authorities and its proximity to the United States adds further strategic value for organisations headquartered or operating in the US market.
A tax-neutral platform provides additional advantages, but the jurisdiction continues to evolve beyond this. Cayman is continually refining regulatory rules and industry guidance to remain aligned with global expectations and best practice. This constant drive for improvement ensures that Cayman not only maintains but strengthens its leadership position in the international captive insurance landscape.
Increasing interest from a broad range of industries
Cayman continues to attract a diverse mix of industries seeking effective risk management solutions through captive insurance. Healthcare remains a core segment, but there is growing momentum from other sectors, including transportation, construction, real estate and not-for-profit organisations.
Interest from the (re)insurance sector is also rising. Cayman's regulatory framework, which incorporates proportionate and targeted oversight particularly relevant to the U.S. market, makes it a viable and competitive domicile for reinsurers. The capital markets are similarly active in the jurisdiction. With Cayman already deeply established as a preferred domicile for investment structures, the infrastructure and expertise needed to support insurance-linked securities (ILS), reinsurance sidecars and third-party capital vehicles are well developed.
As capital and insurance continue to converge, the jurisdiction is well positioned to facilitate the next generation of underwriting-linked investment structures.
Onshore versus offshore dynamics and Cayman's role in the global market.
Cayman remains one of the three most significant global domiciles, alongside Bermuda and Vermont. While other onshore domiciles in the US have grown in prominence, Cayman continues to offer a home for organisations seeking an internationally recognised, flexible and business-efficient environment for captive formation and management.
Each jurisdiction offers unique advantages, and the choice between onshore and offshore often depends on the organisation's specific objectives and risk profile. Cayman's strengths include streamlined regulatory processes, broad industry expertise and cost efficiencies in both formation and ongoing operations.
Looking ahead, Cayman is actively developing a sophisticated and mature reinsurance industry. This strategic evolution is expected to enhance the jurisdiction's competitiveness within the global reinsurance marketplace and further increase its attractiveness to both reinsurers and captive owners.
Authors
Dawn's insurance career began 25 years ago on the carrier side of the industry where she held various leadership roles across multiple disciplines including Claims, Operations and Underwriting. Dawn started with Artex in May 2025 as Chief Underwriting Officer and Head of Captives, Artex North America. She is responsible for the leadership, growth, staff and management of the Artex North America Captives, Benefits and Underwriting businesses operating in the U.S., Cayman, and Bermuda.
Dawn's responsibilities also include business operations such as product development, operational efficiency, market management and mergers and acquisitions. Dawn is a licensed attorney, sits as a board member for APIW, an organization dedicated to fostering professional growth and leadership skills among women insurance professionals and was recognized as a 2021 Business Insurance Woman to Watch.
