Form a Captive

If you are looking to domicile your captive in the Cayman Islands, what are the next steps to take?
Here’s everything you need to know about getting started.

Enquire

Step by Step – New Captive Insurance Companies

  • Once the decision has been made to move forward, you need to select a Cayman insurance manager and other service providers
  • Negotiate fronting and reinsurance arrangements (as necessary) 
  • Prepare the CIMA license application with assistance from the insurance manager 
  • Meet with the Insurance Division of the Cayman Islands Monetary Authority to discuss the proposed captive 
  • Submit the completed application  

Incorporation and Approval

Incorporation of the company takes place through the General Registry, which normally takes five business days from the submission of documents. It is usually only done after the insurance license has been approved in principle, but can be done sooner. 

The Application Form – New Captives

The application should include the following: 

  • Completed license application form 
  • The business plan, which includes: 
    • Rationale for formation
    • Ownership and management structure, including directors and officers
    • Proposed capitalisation
    • Description of proposed insurance programs, including limits and retentions supported by recent actuarial analysis
    • Details of any fronting and reinsurance arrangements
    • Details of claims administration
    • Description of loss reserving methodology
    • Description of investment and dividend policy
  • Financial projections for a three-year period
  • Acceptance letters from an insurance manager and auditor in the Cayman Islands
  • Letter of undertaking as to minimum capital (usually from shareholder)
  • Personal questionnaire, references, and police clearance certificates or equivalent for managers, shareholders, directors and officers

Enquire

If you’re interested in forming an insurance or reinsurance company and need further information, please contact us.

Further information can also be found on the Cayman Islands Monetary Authority website.

Please enter your name.
Please enter your email address.