Legislation: International Insurance

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Summary

All companies wishing to do business as an Insurance company must do so through an IBC and having a registered agent and a registered office.

• The Act provides for three types of insurance licenses:
  • Class A - general insurance business only
  • Class B - long term insurance business
  • Class C - both general and long term insurance business
• Companies seeking a Class A or a Class C license, may, with respect to its general insurance business be granted a: Sub class 1 license if the company is a Captive insurance company, or a Sub class 2 license in all other cases in respect of general insurance business.
• A licensee must at all times have two directors (who must be natural persons), at least one of which must be a resident of St. Lucia.
• In order to incorporate an IBC to partake in international insurance business, the person seeking to incorporate must first make a tentative or preliminary application to the Financial Services Regulatory Authority (FSRA) for approval to incorporate the IBC.
• The capital requirement for Insurance companies under the Act ranges from $50,000 to $100,000. At least $50,000 must be deposited or invested in a manner prescribed by the FSRA.
• Companies will be subject to regulation by the FSRA and will have to file annual audited statements.
• Companies regulated under the Act will have to maintain total capital and surplus and liquidity adequate to its ongoing needs.
• There are special provisions maintaining the confidentiality of the information submitted to the FSRA on application and protecting the confidentiality of the affairs of the licensee or the affairs of a customer of a licensee.
• Insurance companies are IBC's and therefore not subject to any taxes (unless they have elected to be subject to 1% tax) or stamp duties in St. Lucia.
• The business nor the shares of an International Insurance Company shall be transferred without the approval of the FSRA.

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