Legal Framework

Cayman has worked with the IMF, OECD, FATF and others to create a stable, well-regulated legal financial system.

The Cayman Islands is a British Overseas Territory, governed by a democratically elected government. The Queen is represented by a Governor who has veto power.

Cayman has a sophisticated legal regime with respect for Rule of Law, due process, the right to personal privacy, superior corporate law and a highly efficient court system, where the final court of appeal is the Privy Council in London.  

Because the law is based on English common law, the structures are familiar, promoting legal and commercial certainty and security. For example, lenders can enforce security interests to protect creditors and investors.

The implementation of the new Insurance Law (2010) and its accompanying regulations has modernised the Cayman offering, ensuring that different areas of insurance – i.e. domestic insurance, captive insurance companies, insurance-linked securities and reinsurance companies - are all regulated based on the uniqueness of their structures and on their own individual risk profiles, increasing transparency and streamlining processes - what any commercially-minded, legitimate company wants.

The Incorporated Cell legislation is also now in effect, which will pave the way for new alternative risk management structures to domicile in the Cayman Islands. This legislation allows segregated portfolio companies (SPCs) to incorporate a single cell as a special Cayman exempted company called a portfolio insurance company (PICs). This structure allows for increased corporate governance, provides greater tax certainty as to the US tax status of the cell, and it is more readily migrated to a stand-alone captive, which works well for incubation purposes.

Relevant Cayman Laws

Companies Law (2013 Revision)
Companies Management Law (2003 Revision)
Insurance Law, 2010
Insurance (Amendment) Law, 2012
Insurance (Amendment) Law, 2013
Monetary Authority Law (2013 Revision)
Money Laundering Regulations (2013 Revision)
Proceeds of Crime Law, 2008
Terrorism Law (2011 Revision)

A full list of the laws of the Cayman Islands can be found at the Cayman Islands Judicial and Legal Information

Cayman Captive Forum

Know How

Key Issues

Latest News
Thu-Nov-02-2017
IMAC Scholarship Students Announced

Four young Caymanians are pursuing their tertiary education overseas in the upcoming months, thanks to the support of the Insurance Managers Association of Cayman (IMAC). Kimberly Tatum; Isaiah Robinson; Lacee Barnes; and Jake Bennett each received IMAC’s ...

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