New Insurance Annual Returns Requirements (2017-10-17)

Summary

This is a General Industry Notice issued by the Cayman Islands Monetary Authority (CIMA) on 17 October 2017, clarifying the process for licensed insurance companies that will not meet their statutory annual return filing deadline under Section 9 of the Insurance Law, 2010. It sets out that any such company must proactively request an extension from CIMA before the deadline passes, rather than simply filing late.

• Timing of request: Extension requests must be submitted in writing at least two weeks before the prescribed Section 9 deadline.
• Length of extension: Any extension granted will run for two months.
• Further extensions: If a licensee needs more time beyond the two-month extension, it must submit a fresh request, which will attract a new fee under Schedule 2, Point 9 of the Monetary Authority (Fees) Regulations.
• Discretionary nature: Extensions are discretionary and require a letter explaining the reason for the delay together with unaudited financial statements; CIMA may ask for further information depending on the licensee's size, nature, scope and regulatory standing.

Notably, the notice states that this extension-request requirement is retroactive to 2 July 2013, meaning it has effectively applied to insurance licensees' annual return filings since that date, even though the notice itself was only published in 2017.

Key obligations

• Licensed insurance companies unable to meet the Section 9 annual return deadline must submit a written extension request to CIMA at least two weeks before that deadline.
• Extension requests must include a letter outlining the reason for the request together with unaudited financial statements.
• Any extension granted will be for a period of two months only; further time beyond that requires submitting a new extension request and paying a new fee.
• Licensees must provide further information requested by CIMA at its discretion, depending on the licensee's size, nature, scope and standing.

Applies to

licensed insurance companies

Deadlines

• at least two weeks prior to the prescribed deadline under Section 9 of the Insurance Law: Deadline by which a licensed insurer must submit a written extension request to CIMA before its annual return due date.
• two months: Duration for which an approved extension of the annual return filing deadline will be granted.
• retroactive to 2 July 2013: The extension-request requirement is stated to apply retroactively from this date.