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FAQs
What is the annual licence fee for insurers
Captive - $ 3,500
Reinsurers - $ 7,500
Captive SPC - $ 7,500
Domestic - $ 3,500 with total premium volume of
$0 to $4,999,999
$ 7,500 with total premium volume of
$5,000,000 to $9,999,99
$10,000 with total premium volume of
$10,000,000 and above
Does the insurance legislation include provisions for special categories of captives or Rent-A-Captives, Risk Retention Groups, etc.?
The Insurance Act, 2008 does not define categories of captives nor does it provide restrictions on the type of captives that can be formed. Therefore, rent-a-captives and risk retention groups can be formed.
Insurance SPCs may be formed under provisions contained in the BVI Business Companies Act, 2004.
Are there legislative provision for re-domiciliation in and out of the Virgin Islands?
The BVI Business Companies Act, 2004 contains provisions for domiciliation/re-domiciliation to and from the Virgin Islands (BVI). If the new insurer (seeking re-domiciliation to the Virgin Islands) desires to use the same name (as currently used in the foreign jurisdiction if it is available) an application must be made to the BVI FSC for name approval. An application would also be required to be submitted for approval to carry-on insurance business in or from within the BVI.
How many insurance managers are in the British Virgin Islands?
Current statistics on insurance managers (and Insurance sector generally) may be found in the most recent edition of the BVI FSC Statistical Bulletin.
At the end of 2013 there were 14 insurance managers licensed to carry on insurance business as an insurance manager in the BVI.
Are all insurance companies required to have Insurance Managers?
Only captive insurers are mandated to appoint and and at all times have an insurance manager.
A foreign insurer is required to have a representative in the BVI if it does not operate a branch in the BVI. The representative may be licensed either as an insurance agent or insurance manager.
What is the minimum margin of solvency requirement for an insurer?
Insurer Minimum Solvency Margin
General Insurers
written premiums less than $500,000 $100,000
written premiums $500,000-$5,000,000 20% of annual net written premium
written premium greater than $5,000,000 $1,000,000 PLUS 10% of difference
difference between annual net written premium and $5,000,000
Long-term Insurers $250,000
the prescribed minimum solvency margin is $100,000;
- if the insurer’s annual net written premium is greater than $500,000, but less than $5,000,000, the prescribed minimum solvency margin is 20% of the annual net written premium;
- if the insurer’s annual net written premium is greater than $5,000,000, the prescribed minimum solvency margin is $1,000,000 plus 10% of the difference between the annual net written premium and $5,000,000.
Long-term insurers - the prescribed minimum solvency margin is $250,000
What documentation is required to add or change a director, or senior officer?
To add a director or senior officer, a BVI insurer, insurance manager and insurance intermediary are all required to seek the prior written approval of the BVI FSC (this applies to all companies including captives which are BVI business companies, i.e. companies incorporated in the BVI). The company is required to complete and submit to the FSC - an application which provides full details of the applicant, the expertise of the director or senior officer and due diligence information. Full requirements are covered in the Guidelines for the Approved Persons Regime which is published by the BVI FSC.
A BVI insurer, insurance manager and insurance intermediary is required to notify the BVI FSC within fourteen (14) days of the event, when a director or senior offices ceases to hold office with or to be employed by the licensee.
A foreign insurer is required to notify the BVI FSC within fourteen (14) days of the event, of changes in director and senior officers.
What information must be submitted on the shareholder of a captive?
If the shareholder is an individual, full details about the person, (including references, resumes, certified copy of passport photo/details page and other supporting due diligence information) must be provided to the BVI FSC. Full requirements are outlined in the Guidelines for the Approved Persons Regime.
If the shareholder is a company, evidence of incorporation, articles of association of the company, names and addresses of ultimate beneficial owners and other supporting information must be submitted to the BVI FSC. Full details may be found in the Guidelines for the Approved Persons Regime published by the BVI FSC.
If the shareholder is a trust, a copy of the trust deed must be submitted to the BVI FSC. The trust deed should provide details on the trustee, protector, beneficiary, etc. Explicit due diligence requirements that relate to trusts as shareholders may be found in the Approved Forms and Related Guidelines published by the BVI FSC.
What criteria are used to determine whether an applicant for a licence is “fit and proper”?
The BVI FSC’s criteria for assessing fitness and propriety of entities and individuals is set out in the Regulatory Code, 2009. Fitness and propriety requires a review of several components including honesty, integrity and reputation, competence and capability and financial soundness.
Does the FSC issue certificates of good standing relating to insurance companies vis-a-vis their compliance with insurance regulations?
No, however, the FSC may provide pursuant to the Insurance Act, 2008, information that is considered public information to the general public.
The FSC may also provide to persons entitled to receive information where there are any regulatory issues with respect to a particular licensee - international cooperation.
What are the requirements for an insurance intermediary’s licence??
Currently, any BVI business company carrying on insurance business in or from within the BVI must be licensed by the FSC to do so. All intermediary (agent and broker) licence holders must be BVI business companies. An application, which can be found in the Insurance section of our website (Approved forms and Guidelines) must be submitted to the BVI FSC along with the required documents for consideration.
Who is a Company Manager?
A Company Manager is an entity that carries out company management business only, which is defined by the Company Management Act, 1990 as, "the provision of company management services for profit or reward in or from within the Virgin Islands".
Who is a General Trust Licence holder?
A General Trust Licence holder is an entity which holds a valid general trust licence as prescribed by the Banks and Trust Companies Act, 1990 and enables the holder to carry on trust business without restrictions. Trust business as defined by this Act means "the business of (a) acting as a professional trustee, protector or administrator of a trust or settlement, (b) managing or administering any trust or settlement, and (c) company management as defined by the Company Management Act, 1990.
Who is a Restricted Trust Licence holder?
A Restricted Trust Licence holder is an entity which holds a valid restricted trust licence as prescribed by the Banks and Trust Companies Act, 1990 and allows the holder to carry on trust business with restrictions specifically providing trustee services to a limited number of trusts.
What is a Registered Agent?
A registered agent as defined by the International Business Companies Act ("IBCA") means "the person who is at any particular time performing the functions of registered agent of a company incorporated under this Act pursuant to subsection (1) of section 39" (of the IBCA).
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