CAYMAN ISLANDS Law and Practice Contributed by: Jason Ta, Ben Magahy, Paul Walters and Gemma Walters, Travers Thorp Alberga
see again for example 7.1 Creation and Usage Regulations .
property damage and liability; crime; general liability; healthcare; hospital professional liabil - ity and physicians’ liability; marine and aviation; medical malpractice liability; product liability; professional liability; property; surety bonds; and worker’s compensation) and (ii) long-term insur - ance (which includes life; annuity; accident and health; and deferred variable annuities). Any person carrying on insurance business, rein - surance business or business as an insurance agent, insurance broker or insurance manager in or from the Cayman Islands is required to hold a valid licence issued for that purpose under the Insurance Act. Amongst other things, each class of licence will have its own regulatory capital and liquidity requirements (which may be adjusted by CIMA following their assessment of the business model of the licensee). 9. Regtech 9.1 Regulation of Regtech Providers Regtech providers may be regulated depending on their activities and whether they fall within the scope of a regulatory law in the Cayman Islands. As an example, a regtech provider focusing on identity verification may not be regulated, but if that technology is deployed in the course of that provider performing an activity that is regu - lated (eg, mutual fund administration), then the regtech activity will be regulated. 9.2 Contractual Terms to Assure Performance and Accuracy Clear obligations with respect to timing of deliv - erables from the technology provider remain the key area of focus. Financial services firms seek to impose indemnification and liquidated damages provisions to assure performance and
8. Insurtech 8.1 Underwriting Processes
At present, there are no specific and material insurtech underwriting initiatives or develop - ments in the Cayman Islands, but conditions are conducive for this to change given the efficien - cies achieved in banking and financial services generally through utilising blockchain technol - ogy. It may only be a matter of time before the insurance sector also starts involving itself – the Cayman Islands has a significant insurance sec - tor and a growing number of reinsurers are being licensed in the Cayman Islands. In general, the Cayman Islands’ supervisory and legislative framework adopts international standards, but also has in-built flexibility to ena - ble CIMA and licensees to apply requirements according to the nature, size and risk profile of licensees. It may be useful to note that CIMA adopts a risk-based approach to regulating the insurance sector in the Cayman Islands. In particular, the Cayman Islands has elected not to seek Solven - cy II equivalency, which gives CIMA discretion to apply risk-based prudential standards, thus allowing insurers and reinsurers to implement their own internal regulatory capital model and structure their capital efficiently according to their risk profile. 8.2 Treatment of Different Types of Insurance The primary classes of insurance and reinsur - ance available in the Cayman Islands consist of (i) general insurance (which includes motor
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