The Reinsurance Landscape in Bermuda and the Cayman Islands

By Juvaine Rajamany

International News, July 2025

Having worked as an actuary in Bermuda over the past year, I’ve had a front-row seat to the ongoing evolution of the reinsurance industry. Bermuda has been a long-lasting pillar of the global reinsurance community, and together with the Cayman Islands are fast becoming offshore reinsurance jurisdictions of choice. But beyond the numbers and headlines—there is an impact on how actuaries like me and many others on the islands approach risk, regulation, and innovation in our everyday work. This article explores the latest developments in both jurisdictions and takes a look at what they mean for our profession.

Bermuda

Bermuda’s significance in the reinsurance world is well-known. While statistics tell us it accounts for a substantial share of global reinsurance capital, the real story emerges in the diversity of companies and people who call the island home. From multinational reinsurers to boutique life reinsurance firms, Bermuda has a great mix of experience. As an actuary here, you quickly learn to navigate both the complexity of the international regulatory environment and gain deeper insights into why these reinsurers decide to call Bermuda home.

Working in Bermuda also means gaining experience working with the Bermuda Monetary Authority (BMA), an agile regulator that takes its responsibility seriously amongst global scrutiny of offshore reinsurance. The BMA’s emphasis on solvency, capital adequacy, and proactive supervision aims to ensure a robust industry. This challenges actuaries to stay up-to-date and aware of evolving regulatory requirements.

A significant focus for many of us in the life sector is the rise of asset-intensive reinsurance. These transactions are complex and often involve large blocks of annuity or universal life liabilities with corresponding asset portfolios. Structuring and pricing these deals requires a high level of actuarial expertise—especially in asset-liability management, economic scenario generation, and solvency modeling under both Bermuda’s BSCR framework and other jurisdictional requirements.

Another distinctive feature of Bermuda’s market is its embrace of alternative reinsurance vehicles like sidecars and incorporated segregated accounts companies (ISACs). While these structures are often seen as tools for capital efficiency, the actuarial work that underpins them is equally innovative. Actuaries play a central and agile role in these vehicles, gaining exposure to a different flavor of reinsurance work. The international nature of Bermuda’s business also means engaging with clients and partners across multiple time zones and regulatory regimes, broadening the horizons beyond just Bermuda.

The BMA has introduced several new initiatives in recent years that are changing how we work. Enhanced disclosure requirements for asset intensive reinsurance, an enhanced focus on liquidity risk, and growing emphasis on ESG-related exposures are just a few examples. These changes signify the importance of actuarial judgment and our role within this space. The actuarial profession in Bermuda actively engages with the BMA and other stakeholders through working groups to ensure that the needs of the reinsurance market is conveyed accurately to balance regulation and innovation.

Cayman Islands: An Emerging Reinsurance Hub

From conversations with colleagues and partners in the region, it's clear that the Cayman Islands are experiencing a reinsurance renaissance of their own. The growth in life and annuity reinsurance, in particular, has caught the attention of many Bermuda-based reinsurers exploring diversification opportunities.

While Cayman’s regulatory regime differs from Bermuda, it is evolving quickly. The Cayman Islands Monetary Authority (CIMA) is moving toward greater alignment with international standards, and its NAIC qualification efforts could further enhance its appeal to U.S. insurers. For actuaries, this opens new frontiers—whether through direct engagement with Cayman-based entities or cross-border structures involving both jurisdictions.

Cayman’s embrace of segregated portfolio companies (SPCs) and sidecars also mirrors Bermuda’s innovation streak. These structures create opportunities for actuarial professionals to develop expertise across various jurisdictions. As Cayman matures, I anticipate more collaboration between the actuarial communities in both islands.

Final Thoughts

As an actuary working in Bermuda, I’ve come to appreciate the reinsurance industry and everything one can learn from island living—that yields personal and professional growth. Both Bermuda and the Cayman Islands offer exciting, albeit distinct, landscapes for actuarial growth. Bermuda and Cayman represent a new frontier for actuaries seeking to stretch their skills, broaden their perspective, and contribute meaningfully to a global profession.

Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the editors, or the respective authors’ employers.

Juvaine Rajamany, FASSA, CERA, is a manager at Deloitte in Bermuda. He can be reached at jrajamany@deloitte.com.