Captive Insurance Companies

The Insurance Act 1994 provides for the establishment and management of captive insurance companies in the BVI.

Specific provisions of the Insurance Act and related regulations include:

• All entities carrying on any form of insurance business are required to be licensed under the auspices of the Commissioner of Insurance;
• Minimum paid-up capital requirements range from $100,000-300,000. Application and annual insurance licence fees range from US$ 250 US$ 2,000;
• Every licensed insurer will be required to have an insurance manager, licensed and resident in the BVI. An insurance manager must have specific insurance knowledge and expertise and will have certain obligations to the Commissioner as regards the conduct of business by the insurer;
• All records, documents and information disclosed to the Commissioner are absolutely privileged, but may be sanctioned in appropriate circumstances for release to a recognised international organization or law enforcement agency for the purposes of legal assistance in the investigation of criminal activity;
• Exemptions from any or all provisions of the Insurance Act are available in appropriate circumstances
• Minimum margins of solvency for insurers are as follows:

General Business
	- Net retained annual premium (N.R.A.P.):
		- less than US$ 1 million - US$ 200,000
		- less than US$ 5 million - 20% of N.R.A.P.
		- in excess of US$ 5 million - US$ 1.2 million plus 10% of the N.R.A.P. in excess of US$ 5 million
Long Term Business: - US$ 250,000

Non-allowable assets include advances to parent company or subsidiaries, real estate and unquoted securities.

A licensed insurer is required to maintain permanently in the BVI adequate books and records of its insurance business and financial affairs and all licensees are required to submit annual audited financial statements to the Commissioner.