In a move that will be of great interest to the insurance-linked securities (ILS) community on Bermuda, the Cayman Islands Monetary Authority (CIMA) has introduced new legislation that will streamline and thus speed up applications for cat bonds registered in the jurisdiction.
While Bermuda is the market leader for ILS deals, other countries are keen to make themselves more attractive to their formation of the vehicles that allow investors to participant in this fast-growing market.
According to CIMA the new regime will make the registration timeframe more efficient, and assist in making the Cayman Islands a more competitive jurisdiction.
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.
As from February 6, non-complex cat bond applications can be approved at a divisional level by the authority’s insurance supervision division, allowing the licencing to be completed within 5-10 business days.
The division has also been given the power to approve ‘renewals’ of analogous cat bond licences within 5-7 business days.
Previously, all applications were approved during the authority’s weekly management committee meetings.
“This fast-track licencing process is another testament towards CIMA’s efforts in accommodating sophisticated solutions within the financial industry, while maintaining our obligation as a regulator,” said CIMA’s managing director Cindy Scotland in a statement.
CIMA, The Cayman Islands Monetary Authority, Cat bond, Cayman Islands, Cindy Scotland