Turks and Caicos: Offshore Business Sectors
See Offshore Business Review – Insurance for a more general treatment of captive insurance companies.
The Turks and Caicos Islands is a significant centre for offshore insurance services. More than 6,255 (2012) licences have been issued to Insurance companies and intermediaries under the Insurance Ordinance 1989. The insurance legislation in the Islands has been described as both flexible enough to accommodate the needs of the client and to keep operating costs low but yet backed up by a regulatory regime which is strictly enforced.
The Islands are said to be a domicile of choice for captive and restricted licence insurers.
While several dozen captive insurers have been set up, but the Turks and Caicos' main insurance success story is the 'credit life' or "producer owned reinsurance companies" (PORCS) many of which are owned by US automobile dealers who reinsure credit related risks arising from their dealerships which have been placed initially with rated primary insurers. More than 3,240 such companies have been set up. Credit life reinsurance companies are known as section 7(11) companies. They are restricted to offering reinsurance only to named and acceptable insurance carriers already regulated in an approved jurisdiction and are exempted from certain reporting requirements and licensing fees.
There has also been burgeoning interest in the formation of mortgage guarantee reinsurance companies.
The insurance industry is governed by the Insurance Ordinance 1989 and the Insurance Regulations 1990. These Ordinances together with the 1995 Guidelines on the Issuance of Insurance Licences establish the licensing process: see Law of Offshore for further details of the licensing and supervisory regimes.