Insurance Financing – Cayman CPs

In this second part of our series on insurance financing, we break down the conditions precedent (CPs) process in financing transactions involving Cayman Islands insurance/(re)insurance companies.

What are CPs?

CPs are specific legal, financial and procedural requirements of a lender that need to be satisfied before a lender releases funds to a borrower. When entering into a financing transaction involving a Cayman Islands insurance/(re)insurance company, lenders and their counsel must give careful consideration to what CPs are required. The regulatory framework governing Cayman (re)insurers, together with the specific requirements of Cayman Islands law, give rise to a number of bespoke CP considerations that differ materially from those applicable to borrowers incorporated in other jurisdictions.