Insurance (Applications and Fees) Regulations, 2012

Summary

These are the Insurance (Applications and Fees) Regulations, 2012, made under section 40 of the Insurance Law, 2010. They set out the prescribed application forms (Schedule 1) that must be used when applying for an insurance licence under section 4 of the Insurance Law, and the fee schedule (Schedule 2) for licence grant fees and annual licence fees payable under section 7 of the Law.

The regulations apply to applicants for and holders of Class A, B, C and D insurer's licences, as well as insurance agents, insurance brokers and insurance managers regulated by the Cayman Islands Monetary Authority (CIMA).

• Schedule 1 application forms: Contains detailed application forms varying by licence class and type (e.g. Class A external insurer, Class A locally incorporated insurer, and others), requiring information on ownership, key personnel, financial statements, business plans, reinsurance, corporate governance, AML/CFT arrangements and, for domestic business, policyholder protection trust arrangements.
• Fee schedule: Fixes a schedule of licence and annual fees ranging from $1,000 for insurance agents up to $84,000 for Class D insurers.
• Reduced fees: Provides rules for reduced fees where a licensee has ceased writing new business, with reinstatement of the reduction if new contracts are later written.
• December-granted licences: Fees are pro-rated for licences granted in December.
• Cabinet discretion: Cabinet has discretion to waive or reduce fees for persons in Cayman Brac or Little Cayman.
• Regulation 5 derivatives clarification: Entering into certain derivative-type contracts (options, swaps, futures, forwards, contracts for differences, etc.) does not of itself constitute carrying on insurance business, provided payment obligations are not contingent on the other party suffering a loss.

Key obligations

• An application for an insurance licence under section 4 of the Insurance Law must be made using the prescribed form in Schedule 1, accompanied by the information and attachments specified in that form.
• Applicants must provide any supplementary information or clarification requested by the Authority regarding their application.
• Applicants and licensees must pay the licence grant fee and annual licence fee prescribed in Schedule 2 for their licence class or category (Class A, B(i)-(iii), C, D, insurance agent, insurance broker, or insurance manager tier).
• Where a licence is granted in the month of December (for Class B, C or D licences), the licence fee payable is one-twelfth of the prescribed annual fee.
• A licensee whose licence fee has been reduced by half due to ceasing new insurance business must immediately pay the reduced amount if it later effects any new contracts of insurance during the relevant year.
• Applicants must submit the completed application with the required attachments (e.g. business plans, financial projections, personal questionnaires, references, police certificates, auditor and actuary confirmations, and, for domestic business, policyholder protection trust documentation) and a non-refundable application fee to CIMA.

Applies to

Class A insurers, Class B insurers, Class C insurers, Class D insurers, insurance agents, insurance brokers, insurance managers, applicants for an insurance licence

Related documents

• This document is made under Insurance Law, 2010 (Law 32 of 2010)
• Insurance (Applications and Fees) (Amendment) Regulations, 2013 amends this document
• Insurance (Applications and Fees) (Amendment) Regulations, 2024 (SL 68 of 2024) amends this document
• Insurance (Applications and Fees) (Amendment) Regulations, 2025 (SL 65 of 2025) amends this document
• Insurance (Applications and Fees) Regulations (2026 Revision) replaces this document