Draft Rule and Statement of Guidance: Investment Activities for Insurers
The Cayman Islands Monetary Authority (“the Authority”) recently published a Private Sector Consultation Paper with a draft Rule and draft Statement of Guidance on Investment Activities for Insurers (the draft “Rule” and “SOG”). The draft Rule and SOG are intended to replace the current Statement of Guidance for Asset Management & Investment Strategy for Insurance Companies to bring our regulatory framework relating to Investments for Insurers up to date with Insurance Core Principle 15 developed by the International Association of Insurance Supervisors (“IAIS”), of which the Authority is an active member.
The draft Rule and SOG are intended to apply to all categories of Cayman Islands insurance licensees but there are certain reduced requirements for Class Bi and Bii (captive) licensees in relation to the requirement for an investment committee and the conduct of an investment audit.
The Rule and SOG set out the requirements and associated guidance on investment activities for insurers, including:
- General principles for the investing of assets.
- The requirement for an insurer to invest in a manner appropriate to the nature and duration of its liabilities.
- Prescribed steps to be taken by an insurer in ensuring that it invests in assets which can be properly assessed and managed.
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Draft Rule and Statement of Guidance: Investment Activities for Insurers
