International Insurance Licenses
International insurance companies are governed by the St. Lucia International Insurance Act 1999 (the “Act”). Particular points to note about international insurance companies in St. Lucia are as follows:
- 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 in St. Lucia.
- 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 Minister 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 Minister/Director.
- Companies will be subject to regulation by the director 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 Director on application and protecting the confidentiality of the affairs of the licensee or the affairs of a customer of a licensee.
- Insurance companies are IBCs and therefore not subject to any taxes (unless they have elected to be subject to 1% tax) or stamp duties in St. Lucia.
- Neither the business nor the shares of an international insurance company shall be transferred without the approval of the Minister.
The information in this article was current at 06 Dec 2011