Nevis: Law of Offshore
In July, 2004, the Nevis Ministry of Finance and Development announced the passage of the Nevis International Insurance Ordinance. The ordinance is divided into six sections, and provides for the licensing and regulation of general insurance, captive insurance and reinsurance companies. It is compulsory for insurance companies to have a physical presence in Nevis, whether via a resident manager or a fully trained registered agent, with adequate knowledge and experience of the insurance industry.
In 2006, lawmakers on Nevis approved an amendment to the jurisdiction's insurance law that clarified and tightened up certain sections of the legislation to combat fraud. The Nevis International Insurance (Amendment) Ordinance, 2006 updated the Nevis International Insurance Act of 2004, and, according to then Premier Vance Amory, was drafted to "eliminate loopholes which could be exploited by persons who do not really care what they do in international business."
The International Insurance Ordinance was further amended in 2009 to address some issues in the legislation surrounding reinsurance companies’ share capital.
In June 2006, St. Kitts and Nevis passed a captive insurance law, known as the Captive Insurance Companies Act 2006. According to Prime Minister and Minister of Finance Denzil Douglas, the new captive insurance vehicle will be "extremely competitive", with low licence fees for small captives.
There is a license fee of ECD8,100.00 for the year of registration and a renewal fee for each year thereafter of ECD8,100.00.
However, the licence fee for a 'small captive insurance company' is ECD2,160.00 for the year of registration and ECD2,160.00 annually thereafter. A 'small captive insurance company' means a captive insurance company with annual net written premiums, or, if greater, direct written premiums, not exceeding ECD4,050,000.
A small captive insurance company may apply for a license in a prescribed simplified form. See Tax-Efficient Sectors for a more detailed summary of the captive insurance legislation.
Nevis enacted new insurance legislation in 2009.