Cayman concerns: Thomas Leonardi, former Insurance Commissioner of ConnecticutUS insurance regulators are working towards implementing tighter capital standards that would apply to life insurance business ceded to reinsurers in the Cayman Islands. Cayman has emerged as a rapidly growing challenger to Bermuda’s dominance in the offshore life reinsurance market. The notes from the NAIC’s Financial Condition (E) Committee meeting last month signal that regulators are keeping a close eye on the growth of offshore life reinsurance and regulatory differences between jurisdictions. In life and annuity reinsurance, market risks were transferred to the reinsurer and replaced by credit risk, Mr Houdek explained. “Many state insurance regulators believe this risk warrants immediate attention given the increase in the continued growth in offshore reinsurance transactions.”