George Town, Grand Cayman, October 22, 2025 – CIRCA submitted the following Letter to the Editor in response to a recent article in The Wall Street Journal about Cayman’s reinsurance industry. The piece misrepresented Cayman’s regulatory framework, and while our response wasn’t published, it’s important that the facts are. CIRCA will continue engaging with media and stakeholders to ensure accurate representation of Cayman’s well-regulated reinsurance industry.
To the Editor:
Your Oct. 6 article, mischaracterizes Cayman reinsurers as operating under lower capital requirements and lighter oversight.
In fact, the Cayman Islands Monetary Authority (CIMA) enforces a rigorous, risk-based capital regime aligned with international standards established by the International Association of Insurance Supervisors. Capital requirements reflect the size, nature, and complexity of each reinsurer’s business, ensuring that policyholders remain fully protected.
Cayman’s framework features stringent solvency testing, independent audits, and continuous regulatory supervision, complemented by active engagement with U.S. regulators and global rating agencies. It emphasizes transparency through reporting requirements. All transactions involving a Cayman reinsurance company are subject to prior review and approval by both the relevant U.S. regulators and by CIMA, ensuring full transparency and coordination.
Importantly, Cayman reinsurers fully collateralize their life & annuity obligations to U.S. insurers at the U.S. statutory reserve level with assets held in the U.S. and invested as agreed with the ceding insurers.
Cayman’s emergence as a leading reinsurance domicile is rooted in sound regulation, deep professional expertise, and a long record of financial stability.
Reinsurance written in Cayman supports prudent risk management and enhances protection for policyholders worldwide.
Finally, while the headline refers to business reinsured to Cayman entities, the majority of examples cited in the story relate to transactions in Bermuda, which operates under a separate regulatory regime.
