Extension of Transition Period Under the Insurance Law 2010 (2017-10-17)

Summary

This is a General Industry Notice issued by the Cayman Islands Monetary Authority (CIMA) announcing an extension of the transition period under the Insurance Law, 2010 (as amended by the Insurance (Amendment) Law, 2012). Using its discretion under paragraph 5(b) of the Schedule to the Law, CIMA granted insurance licensees a further 18-month period, running from 1 May 2014, to come into compliance with their obligations under sections 4(4) and 8(2) of the Law. The notice states this extended transition period ends on 31 October 2015.

• Who is affected: Licensees under the Insurance Law, 2010 who had not yet fully met the requirements of sections 4(4) and 8(2), relating to bringing their risk profile and licensing status into compliance.
• CIMA's recommendation: While taking advantage of the extended period, licensees should also work to bring themselves into compliance with the appropriate risk categorization under section 4(3) of the Law, as amended by the Insurance (Amendment) Law, 2013.

No new substantive requirements are created beyond restating and extending the compliance deadline for existing statutory obligations; the notice is procedural/administrative in nature, giving licensees additional time rather than imposing new duties.

Key obligations

• Licensees must bring themselves into compliance with their obligations under sections 4(4) and 8(2) of the Insurance Law, 2010 by the end of the extended transition period (31 October 2015).
• Licensees are strongly recommended (though not strictly mandated) to also achieve compliance with the appropriate risk categorization under section 4(3) of the Law, as amended by the Insurance (Amendment) Law 2013, during the extended period.

Applies to

insurance licensees

Deadlines

• 31 October 2015: End of the extended transition period for licensees to comply with obligations under sections 4(4) and 8(2) of the Insurance Law, 2010.
• 18 months from 1 May 2014: Duration of the further extension granted by CIMA for compliance with sections 4(4) and 8(2) of the Law.