Cayman Islands speed up cat bond issuance

The Cayman Islands Monetary Authority (CIMA) is streamlining applications for cat bond vehicles.

The new regime will make the registration timeframe more efficient, and make the Cayman Islands a more competitive jurisdiction, the regulator said in a press release.

Effective February 6, non-complex cat bond applications can be approved at a divisional level by the authority’s insurance supervision division, allowing the licensing to be completed within 5-10 business days.

The new regulation applies to the so called Class ‘C’ licence category which captures entities that provide reinsurance through the issuance of insurance-linked securities (ILS) such as cat bonds, sidecars, collateralised reinsurance or similar instruments.

The division has also been given the power to approve ‘renewals’ of analogous cat bond licenses within 5-7 business days.

Previously, all applications were approved during the authority’s weekly management committee meetings.

CIMA’s managing director Cindy Scotland said: “This fast-track licensing process is another testament towards CIMA’s efforts in accommodating sophisticated solutions within the financial industry, while maintaining our obligation as a regulator.”

Today’s top stories

Hanover appoints new CEO of Lloyd's insurer Chaucer

Euler Hermes UK and Ireland CEO resigns; successor named

RSA expands coverage in Africa

Former JLT and AIG exec named new CEO of Hyperion's marine subsidiary

Did you enjoy reading this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.