News

The Insurance Managers Association of Cayman (IMAC) and Cayman Finance recently released the findings of an independent Economic Impact Study, which quantifies the substantial contributions of the international insurance and reinsurance sectors to the Cayman Islands economy. The study, conducted by FTS with additional input from the Cayman International Reinsurance Companies Association (CIRCA), highlights the industry's direct and indirect economic influence, including employment, government revenue, business development, and tourism.

According to the study, the Cayman Islands’ international insurance sector generates an estimated CI$233 million in total annual economic impact. This includes over CI$136 million paid to local service providers such as legal, accounting, and compliance firms, and CI$18 million in government fees, bolstering national revenue and infrastructure.

“The findings of this study underscore the critical role that international insurance and reinsurance play in our financial services sector and the broader Cayman economy,” said IMAC Chair, Kieran Mehigan. “From job creation to business travel and community engagement, the industry’s contributions are far-reaching and continue to drive economic growth.”

Key findings from the study include:

• CI$233 million total annual economic impact.
• CI$136 million in payments to Cayman-based service providers.
• CI$18 million in government fees.
• 40,000+ business traveler stayover days, reinforcing the link between insurance and tourism.
• CI$387,000 in charitable contributions to local causes.
• 256 direct jobs supported, with nearly 50% held by Caymanians and over 72% by Caymanians or Permanent Residents.

FTS, an independent consulting firm, conducted the study based on a comprehensive survey of IMAC members and interviews with key industry stakeholders. CIRCA, the industry body representing reinsurance firms, provided additional data to ensure a holistic assessment of the sector’s impact.

“This report reinforces the international insurance sector’s role as a driving force behind the Cayman Islands’ economic growth," said Brittany MacVicar, Associate Director at Cayman Finance. "From driving economic growth and creating high-value employment opportunities to supporting local businesses, the industry’s impact is both substantial and far-reaching. Its synergy with tourism, government revenues, and community initiatives underscores its importance to the broader financial services ecosystem.”

IMAC and Cayman Finance commissioned the study to provide policymakers, industry stakeholders, and the public with clear, measurable data on the sector’s contributions. The report also emphasizes the industry’s ongoing commitment to education, training, and community engagement, including scholarships and workforce development initiatives.

“The international insurance sector is a major pillar of our financial services industry, and its continued growth will be instrumental in shaping Cayman’s economic future,” said Gregg Mitchell, CIRCA Chair. “We look forward to further collaboration to ensure that Cayman remains a premier jurisdiction for reinsurance.”

The full Economic Impact Report, including detailed insights and data, is available for download here, or visit imac.ky.

The Insurance Managers Association of Cayman (IMAC) represents the international insurance industry in the Cayman Islands. IMAC liaises with government and the regulator on the industry’s behalf and promotes innovation and international competitiveness to maintain Cayman’s advantageous market position. The Cayman Islands is one of the largest domicile in the world for captives and a dominant jurisdiction for healthcare captives, group captives, catastrophe bonds and international reinsurance.