Cayman Licences 13 New Captives in Q1

Key Takeaways

• CIMA granted 13 captive licences in Q1 2026.
• Licences split: six Class B(i), seven Class B(iii) captives.
• Four portfolio insurance companies received licences alongside captives.
• Growth underscores Cayman’s leading role in global captive insurance.

Pulse Analysis

Captive insurance continues to be a preferred vehicle for multinational corporations seeking to retain underwriting profits and tailor risk coverage. The Cayman Islands, with its tax‑neutral regime, sophisticated legal framework, and experienced service providers, has long been the world’s largest captive domicile. Recent regulatory reforms by the Cayman Islands Monetary Authority (CIMA) have focused on enhancing transparency while preserving the jurisdiction’s flexibility, reinforcing confidence among global insurers and corporate treasurers. Moreover, the jurisdiction’s commitment to AML compliance and its participation in the International Association of Insurance Supervisors (IAIS) framework further solidify its reputation among global regulators.

In the first quarter of 2026 CIMA issued 13 new captive licences, comprising six Class B(i) and seven Class B(iii) entities, alongside four portfolio insurance company licences. Class B(i) licences typically cover pure captives that underwrite the parent’s risks, while Class B(iii) licences are reserved for group captives serving multiple related companies. The addition of portfolio insurance companies expands the jurisdiction’s product mix, allowing managers to offer segregated investment vehicles that can hold and manage captive assets under a single regulatory umbrella. These licences also show CIMA’s risk‑based oversight, requiring business plans and capital adequacy aligned with IFRS insurance standards.

The steady inflow of new licences signals robust demand for Cayman‑based captives despite broader market volatility. For reinsurers and corporate risk‑takers, the jurisdiction offers rapid setup times, access to a deep pool of actuarial and legal talent, and the ability to structure multi‑jurisdictional risk programs efficiently. Analysts expect the Q2 pipeline to remain strong as U.S. and European firms seek cost‑effective alternatives to traditional insurance, positioning Cayman to retain its market‑share advantage and potentially attract a new wave of fintech‑driven captive platforms. Digital platforms automating captive formation are lowering entry barriers for mid‑size firms.