Statement of Guidance - Licensing - Insurance Managers

Summary

This is a CIMA Statement of Guidance setting out the criteria the Cayman Islands Monetary Authority applies when licensing insurance managers. It explains that licensing decisions are based on rigorous standards intended to protect the reputation of the Cayman Islands as a well-regulated financial centre. The guidance applies to insurance managers seeking or holding a CIMA licence.

• Fitness and propriety: The business must be controlled and managed by fit and proper persons, assessed for honesty/integrity, competence, and financial soundness.
• Minimum ownership/management structure: The business must be run by at least two individuals, with companies needing a minimum of two executive directors; CIMA approval is required for any change in directors, officers or managers.
• Financial resources: Licensees must maintain adequate financial resources.
• Internal systems and controls: Licensees must maintain compliance/procedural manuals and internal controls.
• Record keeping: Licensees must maintain accessible, accurate records, with CIMA approval needed to keep records overseas.
• Anti-money laundering compliance: Licensees must comply with the Money Laundering Regulations, 2000, including know-your-customer obligations.
• Industry standards: Licensees must conform with relevant industry standards.
• Business planning/track record: Applicants must submit a detailed three-year business plan covering services offered, sponsor information, target markets, financial projections, management service agreements, due diligence procedures, business continuity plans, and staffing structure.

Any material changes to the business plan must be notified to CIMA. The document is guidance rather than binding law, but it signals the standards CIMA will apply in exercising its licensing discretion.

Key obligations

• Applicants must demonstrate that persons controlling and managing the business are fit and proper (honest, competent, and financially sound).
• The business must be conducted by at least two individuals, and corporate applicants must have a minimum of two executive directors.
• Any change in directors, officers or managers must be approved by the Authority.
• The insurance manager must maintain, and continue to maintain, financial resources adequate for the nature and scale of its business.
• Licensees must have in place compliance and procedural manuals and internal controls to ensure effective management and legal compliance.
• Records must be timely, accurate, and accessible to the Authority; approval from the Authority is required to locate records overseas.
• All licence holders must comply with the Money Laundering Regulations, 2000 (know-your-customer requirements).
• Licensees are expected to comply with relevant industry standards where such standards exist.
• A detailed business plan covering the first three years of business must be submitted, including services offered, sponsor information, rationale for formation, business details, financial projections, management service agreements, due diligence procedures, business continuity plan, and staffing structure.
• Any changes to the business plan must be notified to the Authority.

Applies to

insurance managers