Modern legislation: An updated insurance Ordinance
The insurance laws in TCI are widely recognized as innovative in their approach. The Insurance Ordinance of 1989 (amended subsequently) permits the creation of purpose designed insurance programmes to fit the precise needs of the captive client and therefore allows for a range of structures to be created.
Nonetheless, the Insurance Ordinance is currently under further review. The updated Insurance Ordinance will ensure the continuation of a competitive legislative framework for domiciling captives and other insurance formations regulated in keeping with international best practices.
The Superintendent of Insurance and the staff of the Financial Services Commission is easily accessible to industry and in constant exchanges with practitioners.
The costs of incorporation, the insurance licensing fees and capitalization costs are quite attractive when compared with other jurisdictions.
Timely application procedures
The requirements for setting up as a service provider or for setting up a captive in the TCI are very convenient, subject to the submission of complete, acceptable application documentation on behalf of qualified principals who are verified to be fit and proper. The FSC will work with all interested parties to facilitate prompt responses and procedures.
Reasonable local requirements
For example, directors are not required to be TCI residents and board meetings can be held anywhere in the world.
A sector for growth
The TCI currently has 62 Captives and 107 restricted Captives. Since 2003, 36 new captives and restricted captives have been domiciled in the TCI and we expect to see strong growth in this area. This is a result of today’s challenging insurance market and also thanks to a number of forward actions being taken by the Government and private sector including:
- a review of the legislative framework,
- increasingly resources in the regulatory structures and
- additional marketing and communication efforts to establish the TCI as a preferred captive destination.