LEGISLATION

 

The Insurance Act, 2008 is state of the art legislation designed to attract quality captive insurance and reinsurance companies.  The Act is flexible with the facility to waive certain regulatory requirements, at the same time the regulatory powers within the Act maintain the BVI's unrivalled reputation as a clean and respectable jurisdiction.  Any insurer will enjoy minimal regulation however being assured that any impropriety will be dealt with swiftly.

 

The BVI does not seek to tax captives, revenue is derived from an annual licence fees fixed at competitive rates.

 

LICENCE APPLICATION

 

The Act lays out a simple form of application.  The most important document required to be submitted with the licence application form is the business plan detailing the type of insurance business, the structure of the company and the reasons for setting it up.  There should be sufficient technical details to demonstrate the viability of the company and projections showing the expected financial position for the first five years.

 

The application form also requires details of the owners, directors and officers and the relevant professional advisers, including the auditor and resident insurance manager.  The Commission must be satisfied as to the probity of all the individuals involved and for this reason good references must always be provided.

 

Most of this information is kept confidential with only the purpose of the licence and the names of the directors being available to the public.  Shareholder information must also be given but there is no objection to the use of nominees if required.

 

There are minimal requirements for a well run captive.  The annual licence fee is due upon application and by January 1 in each ensuing year.  In addition books and records must be maintained at the principle office in the BVI and audited financial statements submitted to the Financial Services Commission annually.