Curaçao: Offshore Business Sectors
See Offshore Business Review – Insurance for a more general treatment of captive insurance companies.
The Netherlands Antilles insurance sector is regulated by the Bank of Curaçao and Sint Maarten (central bank) under the Insurance Supervision National Ordinance 1990. See Law of Offshore and Offshore Legal and Tax Regimes for further details of the supervisory and licensing regime, and the taxation of offshore insurance companies.
The central bank distinguishes between domestic insurers (which may be life or non-life insurance comnanies) 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.
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. The company must have a registered office in the Netherlands Antilles and must keep its records there; there must be a Managing Director (approved by the central bank) in charge of day-to-day operations.
As of the end of 2011, there were about 76 licensed insurance companies in the Netherlands Antilles, of which about 16 were international, mostly captive insurers.