Explore how the Cayman Islands’ insurance sector contributes CI$233m annually, highlighting its vital role in boosting the local economy.
The international insurance industry in the Cayman Islands significantly bolsters the local economy, contributing CI$233 million annually, as revealed by a recent study conducted by The Insurance Managers Association of Cayman (IMAC) in collaboration with Cayman Finance.
This comprehensive report, undertaken by FTS with insights from the Cayman International Reinsurance Companies Association (CIRCA), highlights the substantial direct and indirect economic influences of the insurance and reinsurance sectors. These influences span across employment, government revenue, business development, and tourism.
The CI$233 million infusion includes over CI$136 million paid to local service providers such as legal, accounting, and compliance firms, along with CI$18 million in government fees, thus enhancing national finances and infrastructure.
IMAC Chair Kieran Mehigan stated, “The study’s findings emphasize the pivotal role of international insurance and reinsurance in our financial services sector and the broader Cayman economy. From job creation to business travel and community involvement, the industry’s contributions continue to drive economic growth.”
Key findings also reveal CI$387,000 in donations to local charities and over 40,000 business traveler stayover days, underscoring the connection between the insurance sector and tourism. Furthermore, the industry supports 256 direct jobs, with nearly 50% held by Caymanians and over 72% by Caymanians or Permanent Residents.
Brittany MacVicar, Associate Director at Cayman Finance, remarked, “This report reaffirms the international insurance sector’s vital role in driving the economic growth of the Cayman Islands. From fostering high-value employment opportunities to supporting local businesses, the industry’s impact is extensive. Its synergy with tourism, government revenues, and community initiatives is crucial to the broader financial services ecosystem.”
The study aims to furnish policymakers, industry stakeholders, and the public with definitive data on the sector’s economic contributions. It also highlights the industry’s commitment to community engagement, education, training, and workforce development initiatives, including scholarship programs.
Gregg Mitchell, CIRCA Chair, commented, “The international insurance sector is a fundamental component of our financial services industry. Its ongoing growth will be pivotal in shaping the economic future of Cayman. We anticipate further collaboration to ensure that Cayman remains a leading jurisdiction for reinsurance.”
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