Cayman Islands Monetary Authority Fines Global Core Insurance SPC CI$78,150.00 (2022-12-07)

Summary

This is an enforcement notice announcing that CIMA imposed discretionary administrative fines totalling CI$78,150.00 on Global Core Insurance SPC for breaches of insurance solvency and business-plan approval requirements occurring between 2019 and 2021. The fines were levied under sections 42A and 42B of the Monetary Authority Act (2020 Revision) and the Monetary Authority (Administrative Fines) Regulations (2022 Revision).

• Solvency margin (Segregated Portfolio): Failing to maintain the margin of solvency prescribed by regulation 6 of the Insurance (Capital and Solvency) (Classes B, C and D Insurers) Regulations (2018 Revision) in respect of a Segregated Portfolio.
• Solvency margin (general): Failing to maintain a margin of solvency in accordance with regulation 5(1) and Schedule 1 of the same Regulations.
• Prescribed capital requirement: Failing to maintain solvency equal to or in excess of the total prescribed capital requirement.
• Business plan compliance: Failing to carry on insurance business only in accordance with the approved licence application and business plan, and failing to seek prior written approval of the Authority for changes to the approved business plan or licence information.

CIMA uses the notice to remind all insurance licensees of their ongoing legal obligations to maintain required solvency levels appropriate to their corporate structure and to conduct business strictly in line with their approved licence and business plan.

Key obligations

• Insurance licensees (including Class B, C and D insurers and segregated portfolio companies) must maintain the margin of solvency prescribed by the applicable Insurance (Capital and Solvency) Regulations for their structure, including at the segregated portfolio level where applicable.
• Insurance licensees must maintain solvency equal to or in excess of the total prescribed capital requirement at all times.
• Insurance licensees must conduct business only in accordance with the information and business plan approved in their licence application.
• Insurance licensees must obtain the Authority's prior written approval before changing their approved business plan or any information supplied in their licence application.

Applies to

Class B insurers, Class C insurers, Class D insurers, Segregated portfolio companies (SPCs), Insurance licensees