The Cayman Islands have a story familiar to many in insurance—entering the industry unexpectedly from somewhere else.
In fact, the islands went from sustaining the economy as an
exporter of thatch rope to becoming a thriving reinsurance hub in just over 50 years. Now, t
he islands are seeking qualified jurisdiction status with insurance regulatory authorities in the U.S.
“We have always been a British overseas territory, very small. Everything is imported,” said Honorable An
dre Ebanks, Premier of the Cayman Islands. “Back in the day, we only had one export, which is thatch rope.”
This type of rope comes from the fibers of the silver thatch palm—the national tree of the Cayman Islands—
and is typically used for the shipping and maritime industry. It’s served as a pillar of the islands’ economy sinc
e the 19th century, peaking in 1964 when 1.3 million fathoms of rop
e were exported, according to The National Gallery of the Cayman Islands.
“We actually did used to export it. But then things like nylon came
along, and it died off,” Ebanks said. “Thankfully, we found financial services, and then we found something to supple
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ment the economy. And it’s grown wildly successful ever since.”
Andre Ebanks
Ebanks served as the islands’ Minister for Financial Service
s and Commerce last term and was elected on April 30 of this year as the Premier of the Cayman Islands. One of his
strategic priorities within the current government—The National
oalition for Humanities—is pushing for growth in reinsurance. It’s an aspect of the islands’ economic develo
pment that he understands well, as his ties to the islands’ thatch rope and seafaring history run deep.
“My grandfather, great-grandfather, like many Caymanians, would have gone to sea on a ship to be an actual seafa
rer moving cargo all over the world because that was a job that they
could do. And so, they would send money back home,” he said. “They’ve seen all over the world. They tell stories.”
This seafaring history led to a strong maritime authority on the islands, and even now, the Cayman Islands are a leading jurisdiction for superyacht registrations.
“That’s still driving a big part of the economy,” he said. “So, we’
re actually now moving in a way that complements our history but that’s still assisting the global economy.”
After the COVID-19 pandemic shutdowns, Ebanks said that like many countries, the islands’ government w
as thinking about the next economic opportunity. With strong invest
ment funds, banking and private trust client business, three opportunities were identified for a next step: reinsurance, family offices and technology.