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Saint Kitts: Law of Offshore

Insurance Law

See Offshore Business Review – Insurance for a more general treatment of captive insurance companies.

Non-domestic insurance and assurance businesses must be licensed under the Insurance Act.

The Federation's 1997 Financial Services (Regulations) Order set the following minimum net assets for applicants wishing to engage in the insurance business: long-term and general insurance business, ECD810,000 (USD300,000), reduced to ECD540,000 (USD20,000) for long-term but not general insurance, and further lowered to ECD270,000 (USD100,000) for general but not long-term insurance.

In July, 2004, the Nevis Ministry of Finance and Development in Nevis 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."

In June 2006, Saint 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 for the year of registration and a renewal fee for each year thereafter of ECD8,100.

However, the licence fee for a 'small captive insurance company' is ECD2,160 for the year of registration and ECD2,160 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 Offshore Business Sectors for a more detailed summary of the captive insurance legislation.

Nevis enacted new insurance legislation in 2009. See Table of Statutes.

 

 

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