Cayman Islands Monetary Authority Fines Providers Re SPC CI$16,950 (2022-05-06)

Summary

This is an enforcement notice from CIMA announcing that it imposed a discretionary administrative fine of CI$16,950.00 on Providers Re SPC, a Class B insurer structured as a segregated portfolio company, for breaching section 8(4)(a) of the Insurance Act, 2010 (as amended).

• Basis for fine: Fine imposed under sections 42A and 42B of the Monetary Authority Act (2020 Revision) for breach of a prescribed provision of the Insurance Act, 2010.
• Breach found: Failure of a Class B Insurer established as a segregated portfolio company under Part XIV of the Companies Act to maintain the prescribed margin of solvency in respect of each segregated portfolio, as required by section 8(4)(a) of the Insurance Act.
• Amount: CI$16,950.00 discretionary administrative fine.

The notice is informational, reporting a completed enforcement action, but it signals CIMA's continued use of on-site and off-site monitoring and its willingness to fine licensees, including SPC structures, for solvency margin breaches at the segregated portfolio level.

Key obligations

• Class B insurers established as segregated portfolio companies must maintain the prescribed margin of solvency in respect of each individual segregated portfolio, as required by section 8(4)(a) of the Insurance Act, 2010.

Applies to

Class B insurers, segregated portfolio companies, insurance licensees