INTERNATIONAL INSURANCE

INTERNATIONAL INSURANCE

All Companies wishing to do business as an Insurance Company must do so through an IBC, having a Registered Agent and Registered Office. The Act provides for three types of insurance licence's that are required for the formation of offshore insurance corporations. These are:

• Class A - general insurance business
• Class B - long term insurance business only
• Class C - both general and long term insurance business

CAPITAL REQUIREMENT

The minimum capital requirement for Insurance Companies ranges from US$50,000 to US$100.000. At least US$50,000 must be deposited or invested in a manner prescribed by the Minister/ Director. Companies regulated under the Act will have to maintain total capital and surplus and liquidity adequate to its ongoing needs.

APPLYING FOR AN INSURANCE LICENCE

The following information is needed on an application for an insurance licence, irrespective of the particular Class the client may choose.

• The name and address of the proposed insurance company
• Number of common and preferred shares
• Total capital
• Names and addresses of all the shareholders, directors and officers
• Biographical information of each director, officer and subscriber to 5% or more of the company's capital
• Business Plan
• Minimum of two directors, one of whom must be a local resident.
• An opening balance sheet. For an existing insurance company audited financial statements must be submitted before the issue of the licence.

STATUTORY REPORTING

Under the Act, International Insurance Companies must appoint an auditor and subsequently file audited annual reports with the Director of Financial Services.

TAX EXEMPTION

Insurance Companies are IBC's and are therefore not subject to any taxes or stamp duties in St. Lucia unless they have elected to be subject to 1% tax.

CONFIDENTIALITY

There are special provisions maintaining the confidentiality of the information submitted to the Director on application and thereafter protecting the confidentiality of the affairs of the licencee or the affairs of a customer of a licencee.

FINCOS will facilitate the formation of International Insurance Companies and will serve as Resident - Agent and will suggest a local Director as required.