Cyprus: Offshore Business Sectors
Insurance is regulated by the Insurance Companies Control Service, part of the Ministry of Finance. The Government has traditionally had a benign attitude towards captive insurance companies. It has reduced the normal minimum capital for an insurance company and exempted captives from solvency margin rules and the requirement to maintain Central Bank deposits. In other respects the insurance supervisory regime has to be followed.
Captive insurance companies having non-resident ownership and deriving their income from sources outside Cyprus are not subject to Cypriot taxation.
As of December 31, 2008, the Insurance Companies Control Service (ICCS) of the Ministry of Finance, under the authority of the Superintendent of Insurance, was responsible for the supervision of 39 insuranceand reinsurance undertakings incorporated in Cyprus (same as in the previous year). The supervision of these undertakings was exercised in accordance with the Insurance Services and Other Related Issues Laws of 2002-2008 and their accompanying Regulations of 2002-2004.
See Offshore Business Review - Insurance for a more general treatment of captive insurance companies.