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Curaçao: Law of Offshore

Insurance Law

The Curaçao insurance sector is regulated by the Bank of Curaçao and Sint Maarten (central bank) under the National Ordinance for Insurance Supervision 1990. See Offshore Legal and Tax Regimes for further details of the taxation of offshore insurance companies.

The central bank distinguishes between domestic insurers (which may be life or non-life insurance companies) and international, ie offshore, insurers, who may be captive insurers or reinsurance companies. Foreign companies can qualify as local insurers but will be subject to local supervision on the same basis as a local company. According to the Ordinance, an insurance company must be a locally-incorporated limited liability company (NV) with registered shares, or can be a mutual insurance company. The bank has power to grant exemption from this rule for branch offices of foreign companies.

The minimum authorised capitalisation of an insurance company is ANG200,000 (at the time of writing) but in practice capitalisation will depend on the business plan as disclosed to the bank during the licensing process, and in particular on the applicable solvency margin according to the following rules:

  • For life insurance, 4% of the total of actuarial provisions at the end of the previous financial year after deduction of re-insured provisions, but not less than $225,000.
  • For non-life insurance, 15% of the premium income in the previous financial year, after deduction of re-insured premiums during the year, but not less than $170,000'
  • For reinsurance, 10% of the premium income in the previous financial year, after deduction of retrocession premiums, but not less than $557,000.

Management of insurance operations (Antillean or foreign) must be carried out in the jurisdiction by at least one individual approved by the Central Bank as having adequate skills; books and records must be maintained in the jurisdiction.

In May, 2011, the Central Bank issued Provisions and Guidelines on the Detection and Deterrence of Money Laundering and Terrorist Financing for Insurance Companies and Intermediaries (Insurance Brokers) which sets out indicators of mandatory reporting conditions for the issuance of life insurance policies. These include payments of cash premium of more than NAF100,000. Single premium payments of NAF25,000 or more must also be reported if the policyholder is not resident in Curaçao, the policyholder does not state a fixed address and the term of the policy is for three years or less.



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