Insurance (Reporting) Regulations, 2013

Summary

This 2013 regulation, made under section 40 of the Insurance Law, 2010, prescribes the reporting forms and instructions that insurance licensees in the Cayman Islands must use when filing statutory returns with CIMA. Rather than creating new substantive insurance requirements, it operationalises the annual (and other periodic) reporting obligations under the Insurance Law by setting out a schedule of standard forms (Forms 1 through 15 and variants) covering annual returns, domestic business and underwriting reports, actuarial valuations, funds-for-claims-settlement reports, reinsurance reports, and returns specific to insurance brokers and managers.

• Class A (domestic) insurers
• external (Class B/C/D-type) insurers
• locally incorporated insurers
• insurance managers
• insurance brokers

• audited financial statements
• actuarial valuations certified by an approved actuary
• solvency certifications
• confirmation that licence application information remains accurate
• business and underwriting reports broken down by class of business
• reinsurance documentation
• lists of agents/brokers with fitness confirmations
• For brokers: details of overseas licences, outsourcing arrangements, premium/commission breakdowns by location of risk, and complaints statistics
• a signed declaration verifying the return

The regulations also include a transitional provision: licensees existing when the regulations came into force must comply at their next reporting date due, but in any event not less than twelve months after the regulations took effect, unless a different arrangement is prescribed.

Key obligations

• Insurers (Class A, external, and locally incorporated) must submit an annual return to CIMA using the prescribed Form 1 (or applicable variant), including audited financial statements, actuarial valuation, solvency certification, and required business/underwriting reports.
• Annual report filings are due within 6 months after the company's financial year end.
• Licensees must submit a Domestic Business Report and Domestic Underwriting Report (Forms 1-L/1-G and 2-L/2-G) covering worldwide risk (local insurers) or Cayman risk (external insurers).
• Licensees must submit a Reinsurance Report including cover notes, facultative reinsurance contracts exceeding 10% of gross written premium for a class, and details of cessions to other reinsurers.
• Licensees must submit a Funds for Claims Settlement Report (Form 3) detailing funds/investments and their location and custodian.
• Licensees must provide a list of all agents and brokers authorized to solicit business, including confirmation that they are fit and proper persons.
• Insurance brokers must submit additional information including overseas regulatory licences/authorisations, third-party outsourcing arrangements, premium and commission data by location of risk and product type, and complaints statistics, along with a signed declaration verifying the annual return.
• An actuary approved by the Authority must certify the actuarial valuation of reserves in accordance with Form 4-L or 4-G, as applicable.
• A person approved by the Authority must prepare a certification of solvency for inclusion in the annual return.
• Existing licensees at the date the regulations came into force must comply with the regulations at their next reporting date due, but not less than twelve months from the regulations' commencement, unless otherwise prescribed.
• Licensees must provide such other information as CIMA may request on a case-by-case basis.

Applies to

Class A insurer, external insurer, locally incorporated insurer, insurance manager, insurance broker, insurance agent

Deadlines

• 6 months after company's financial year end: Annual report filing deadline for insurers and insurance brokers under Forms 1 and related annual return forms.
• not less than twelve months from the date of the Regulations coming into force: Transitional provision: existing licensees must comply with these Regulations at the next reporting date due, but not earlier than twelve months after the Regulations took effect.