Insurance Law, 2010 (Law 32 of 2010)

Status per the Consolidated Index of Laws and Subsidiary Legislation (as at 2026-02-28)

This Act is part in force. The following sections are not in force — (a) sections 2 to 4.

Summary

This is the Insurance Law, 2010 (Law 32 of 2010), the core statute that replaced the Insurance Law (2008 Revision) as the framework for licensing and regulating the insurance industry in the Cayman Islands, administered by the Cayman Islands Monetary Authority (CIMA). The document text provided is the original 2010 enactment; the Insurance Law/Act has since been the subject of later revisions, but this text itself does not indicate a repeal date beyond replacing the 2008 Revision.

Licensing Regime

Licensing coverage: Sets out a licensing regime covering insurers (classes A, B, C and D), insurance agents, insurance brokers and insurance managers.
Prohibited activity: Prohibits carrying on insurance business, reinsurance business, or acting as an agent, broker or manager without a licence issued under the Law.
Application and conduct rules: Establishes CIMA's supervisory powers, ongoing obligations for licensees, and rules governing licence applications, fees, and business conduct.

Continuing Obligations and CIMA Powers

Licence compliance: Licensees must carry on business only in accordance with their licence conditions.
Reporting and records: Licensees must file periodic returns and maintain proper records.
Share transfers: Approval is required for share transfers.
Insurance and funds: Brokers and managers must carry professional indemnity insurance, and licensees must maintain trust funds and separate long-term/general business accounts.
Auditor duties: Auditors must perform specified duties.
CIMA powers: CIMA is given powers to issue directions, impose conditions, preserve assets, and revoke or suspend licences.
Offences: There are offences for operating without a licence, using the word 'insurance' improperly, or providing false or misleading information.

The Schedule contains transitional provisions requiring existing licensees under the repealed 2008 Revision to bring themselves into compliance with new conditions (such as director/incorporation requirements, place-of-business requirements, and insurance manager/broker business plan requirements) within eighteen months of the Law coming into force, with CIMA able to extend this period for good cause. Pending applications, civil proceedings, and criminal proceedings under the repealed law continue to be treated as if commenced under the new Law.

Key obligations

A person must not carry on insurance business, reinsurance business, or business as an insurance agent, insurance broker, or insurance manager without holding a valid licence issued under this Law (s.3).
A person seeking a licence must apply in writing to the Authority, including a business plan and the prescribed application fee (s.4).
A class B or class C insurer that does not maintain a permanent approved place of business must appoint an insurance manager in the Islands and maintain full and proper business records (s.6).
A licensee must pay the prescribed annual licence fee on or before 15 January each year after first grant of the licence, or incur a monthly surcharge for late payment (s.7).
Licensees must comply with continuing obligations under Part 3, including filing returns (insurer, broker/manager, agent returns), not issuing or transferring shares without the Authority's approval, and maintaining separate accounts for long-term and general business (ss.8-16).
Insurance brokers and insurance managers must carry professional indemnity insurance (s.13).
Insurers, brokers and managers must maintain trust funds and comply with further provisions relating to long-term business accounts where applicable (ss.15-17).
Auditors of licensees have specified duties under the Law (s.20).
A licensee existing at the Law's commencement who does not meet the new licence conditions (s.4(4)), place-of-business requirements (s.4(6), s.8(1)(c)), or insurance broker/manager requirements (s.10) must come into compliance within eighteen months of commencement, or within a longer period permitted by the Authority for good cause (Schedule paragraphs 5-7).

Applies to

insurers (class A, class B, class C, class D), local insurers, external insurers, insurance agents, insurance brokers, insurance managers, auditors of licensees

Deadlines

on or before every 15th day of January: Licensees must pay the prescribed annual fee for each category of licence held, after the first grant of the licence.
within eighteen months of the coming into force of this Law: Existing licensees not in compliance with the new licence conditions under section 4(4) (and, where applicable, section 8) must come into compliance, or within such longer period as the Authority permits for good cause.
within eighteen months of the coming into force of this Law: Existing licensees not in compliance with sections 4(6) and 8(1)(c) (place of business requirements) must come into compliance.
within eighteen months of the coming into force of this Law: Insurance brokers or insurance managers not fully compliant with section 10 requirements, or without an approved business plan, must come into compliance.

Insurance Law, 2010 (Law 32 of 2010)

Summary

Licensing Regime

Continuing Obligations and CIMA Powers

Key obligations

Applies to

Deadlines

Related documents

Topics

Version history

source file (current)