Apr 2026
The third iteration of ReConnect, the Cayman Islands’ dedicated reinsurance conference, saw record attendance, insightful discussions both on stage and off and underscored the continued momentum for the jurisdiction on the global reinsurance stage. Against this backdrop, Cayman is advancing several important regulatory and market initiatives that will shape the future of its reinsurance sector. Read on for the Conyers insurance teams’ top takeaways from Reconnect: Qualified Jurisdiction – Deadline for Cayman’s Submission Set by the Cayman Islands Government.
In welcome news, the Cayman Islands Premier Mr André Ebanks announced Cayman’s intention to formally submit an application for Qualified Jurisdiction Status (QJS) to the NAIC by the end of Q2 2025. The announcement comes on the back of many years of thoughtful consideration and planning by the Cayman Islands Government, the Cayman Islands Monetary Authority (CIMA) and the local industry who are aligned and motivated to do what is required to hopefully secure QJS.
Collaboration, Transparency and Alignment
With the submission of the QJ application looming, highlighting CIMA’s collaborative efforts and commitment to transparency was high on the agenda. Panellists shared details of Cayman’s reinsurance journey and efforts to educate stakeholders on our regulatory regime, which has included holding regulator-to-regulator working sessions, direct communications with NAIC Commissioners, attending NAIC meetings, thought leadership pieces and, of course, ongoing engagement with US regulators on live transactions.
The less prescriptive nature of the Cayman Islands’ regulatory framework, whilst not inferior, can present interpretive challenges for those without requisite experience of the jurisdiction, and in the words of Premier Ebanks, “if you are explaining you are losing”. Continuing to educate stakeholders on the operation and effectiveness of Cayman’s regulatory framework and winning their confidence will continue to be a focus for CIMA and will be key to Cayman demonstrating equivalency to the NAIC. CIMA has proven to be a collaborative and prudent regulator, with a long-standing history of international cooperation, engagement in international regulatory forums, participation in supervisory colleges and running working sessions with the NAIC to educate on the Cayman supervisory regime. CIMA’s commitment to transparency is reinforced by it being party to 70+ cooperation agreements with international regulators (including the NAIC) and membership in the IAIS Multilateral MOU, ensuring alignment with global standards.
Increasing CIMA’s Bench Strength
CIMA continues to invest in building its internal reinsurance expertise to ensure it is positioned to effectively regulate the increasingly sophisticated reinsurers which are choosing to domicile in the Cayman Islands. In a welcome announcement, Premier Ebanks confirmed that amendments are proposed to be made to increase legislated salary bands in the Public Authorities Act and additional budget made available to enable CIMA to supplement its ranks with additional appropriately experienced and qualified talent. Premier Ebanks also raised the possibility of secondments between the public and private sectors and a new reinsurance specialist post within his ministry. This welcome support from the Cayman Islands Government affirms the reinsurance sector as a strategic priority for the Government.
Strategic Preparation for Increasing Global Scrutiny
A key development discussed throughout the panels was the ongoing preparation of regulators, Government and industry for the Financial Action Task Force (“FATF”) fifth round of mutual evaluation to assess the effectiveness of the Cayman Islands’ regime for combatting money laundering, terrorist and proliferation financing and adhering to financial sanctions. The FATF will conduct an onsite inspection during 2027 as part of that review. This is a major strategic priority for CIMA as outlined in its 2024-2026 strategic plan and early outreach to the market, updates to rules and guidance, and enhancements to the regulatory framework for insurance has been well underway for some time. This strategic advance preparation from a range of stakeholders is a hallmark of a jurisdiction that takes its international standing seriously and is familiar with effectively managing international regulatory pressure whilst fostering innovation and efficiency in its financial services industries, including in insurance.
Private Credit – Plenty of Dry Powder
ReConnect panel discussions highlighted how private credit assets have become a core tool for insurers due to alignment with how insurance balance sheets work, providing predictable, contractual cash flows via interest payments. This provides insurers with steady income to pay claims and benefits, helping close the gap between liabilities and investment income. The convergence of private credit and reinsurance continues with asset managers attracted to life and annuity reinsurers which are structurally built for more illiquid assets with less need for daily liquidity. P&C insurers are seen to be more selective and liquidity-aware due to liabilities being shorter in duration and less predictable, thereby increasing the need for more liquidity and capital flexibility. Panellists noted how the use of private credit is one of the fastest-growing segments of non-bank financial intermediary business. The bottom line is that there is dry-powder available to assist insurer investments with a view to covering policyholder risks and it is up to the insurers and their investment managers to avail of the market opportunities. While headlines in the media suggest that the sky is falling in on private credit, the message from the panel is that’s not the case.
Geopolitics and the Changing World Order – Nobody Has a Crystal Ball!
It was made apparent that recent shifts in the global geopolitical landscape are one of the major risks that the (re)insurance industry must deal with. The war in Iran and recent trade and tariff policies instigated by the US have demonstrated how a geopolitical conflict can have a material implication for risk pricing in the industry. Geopolitical tensions are increasing pressure on (re)insurers, who may be forced to cover losses while also navigating complex sanctions and rising trade restrictions, with the industry now grappling with whether a permanent risk premium will need to be added to products exposed to such geopolitical tensions. At the same time, growing risk aversion, limited capacity for high-risk coverage and escalating civil unrest are making some risks harder to insure and may require greater government involvement. Nobody has a crystal ball, so it’s up to the insurance industry to consider all future possibilities.
AI Adoption and Governance
The insightful AI in action session highlighted how significantly the dial has moved on AI adoption across a range of industries, with the use of AI by insurance companies and service providers becoming embedded across the insurance value chain at a much faster pace and scale than the adoption of previous emergent technologies (such as blockchain). Use cases include agentic AI in customer services, use of AI in catastrophe modelling, pricing/underwriting, asset-liability management and onboarding risk analysis and teams of AI agents that design, build and oversee technology infrastructure. Speakers highlighted the benefits of using AI to provide targeted solutions to targeted issues whilst integrating those solutions into the insurance ecosystem to better unlock human value. This rate of adoption raises questions for the boards of reinsurers and regulators around effective corporate governance and regulation of insurance businesses, including how to best address some of the potential risks such as AI hallucinations and black box decision-making. The importance of keeping a human in the loop where necessary was underscored as critical to managing the balance between efficiency and risk. CIMA confirmed it is very much alert to the challenges around AI governance, and we expect to see further practical guidance and measures around AI governance develop as the AI transformation continues – so watch this space.
Down the Pipeline
Significant enhancements to the regulatory framework applicable to reinsurers licensed in the Cayman Islands have been implemented by CIMA over the past decade, with various Rules, Statements of Guidance and other policies and procedures adopted which align with international standards, including those of the International Association of Insurance Supervisors. This, among a host of other coordinated efforts and enhancements evidencing the ongoing maturation and evolution of Cayman’s regulatory environment, will be the foundation upon which the QJS application will be built.
The NAIC’s review process will be rigorous, and it is acknowledged by CIMA and the Cayman Islands Government that modifications to regulatory licence classes or additional regulatory enhancements and/or regulations may be required as part of the pursuit of the ultimate goal of QJS. Cayman will enter the process with the NAIC in the spirit of partnership, and if it proves that further enhancements are required, the jurisdiction is ready to listen and roll up its sleeves. CIMA representatives on panels throughout the conference also reminded the audience that CIMA’s regulatory framework is based on IAIS standards and looking to the latest enhancements issued by the IAIS would provide the industry with good guidance on the likely direction of the evolution of the regulatory framework in Cayman.