The Nevis International Insurance Ordinance 2004 as amended allow for entities to be licensed insurance companies under the defined Act.
The following are the types of Insurance Entities:
- Allied Reinsurance - means a company carrying on insurance business where the registered reinsurer is allied to a primary insurer who typically initiates insurance contracts as part of its normal course of business, and the allied reinsurer will only assumes risks and accepts premiums from this primary insurer;
- Allied Annuity - means a company carrying on insurance business where the registered insurer’s business entails only the issuance of annuity contracts, and/or single premium life contracts, and where premiums are acceptable only from its parent(s), or other person(s) of substantial relationship, whether personal or business, and the number of annuitants does not exceed ten (10) persons;
- Captive Insurance Business - means insurance business where the insured is a parent or affiliated company of the registered insurer or is a person in respect of whom the registered insurer is authorized by the Registrar to provide insurance;
- General Business - means insurance business that is not long-term business, reinsurance business or captive business and without limiting the generality of this term includes marine insurance, engineering insurance, aviation insurance, transportation insurance, motor insurance, property liability insurance, pecuniary loss insurance, credit and guarantor insurance and miscellaneous personal insurance;
- Insurance Adjuster - means a person, not being an employee of a registered insured, but employable by insurer or insured, who investigates, qualify and/or quantify a loss experienced in relation to a covered risk;
- Insurance Broker- means a person, not being an employee of a registered insured, who arranges contracts of insurance between insurer and insured, or gives advice facilitating the sale of insurance contracts, or is authorized by one or more insurer to enter that insurer into contracts of insurance, collect premiums, and otherwise act as the insurer in dealing with the insured.
- provides management services for one or more insurers; or
- holds himself out as a manager in relation to one or more insurers, but does not include the keeping of insurance business accounts for a registered insurer
No Person shall act as an insurance manager for, or in relation to, a registered insurer, unless that person is registered in a register to be kept by the Registrar in accordance with regulations and has paid to the Registrar the prescribed fee and every prescribed registration fee and every prescribed annual renewal fee.
- Long Term Insurance Business- means insurance business of any of the following kinds, namely,–
- affecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life;
- effecting and carrying out contracts of insurance against risks of the persons insured sustaining injury as the result of an accident, or of an accident of a specified class, or dying as the result of an accident or of an accident of a specified class, becoming incapacitated in consequence of disease, or disease of a specified class, being contracts that are expressed to be in effect for a period of not less than five years or without limit of time and either not expressed to be terminable by the insurer before the expiration of five years from the taking effect thereof or are expressed to be so terminable before the expiration of that period only in special circumstances therein mentioned;
- effecting and carrying out contracts of insurance, whether effected by the issue of policies, bonds or endowment certificates or otherwise, whereby in return for one or more premiums paid to the insurer a sum or a series of sums is to become payable to the persons insured in the future, not being contracts such as to fall within either paragraph (a) or (b); and
- any kind of insurance business declared by regulation to be long-term business;
- Reinsurance - means insurance business where the risk insured by a person is a risk that person has accepted from an insurer;
- Registered Agents - A Registered insurer shall appoint a Registered Agent in Nevis where its principal place of business is outside Nevis and Manager is not resident in Nevis.
Minimum Paid Up Share Capital
The minimum paid up share capital for the classes of insurance business are as follows:
|US$185,000||General Insurance Business|
|US$20,000||Less than 5 Owners Captive and|
|US$50,000||5 or more Owners Captive|
|US$10,000||Allied Reinsurance Business|
|US$10,000||Allied Annuity Insurance Business|
Minimum Margin of Solvency
“Minimum margin of solvency” is the amount by which an insurer's assets must exceed its liabilities.
In the case of an insurer other than an insurer carrying on long-term business, the minimum margin of solvency shall be at least the minimum amount of paid up capital as prescribed in section 7 (1)(b) of the Ordinance or, if greater:
- where the net retained premium of the insurer does not exceed $5,000,000 the prescribed amount is 20% of net retained premium;
- where the net retained premium of the insurer exceeds $5,000,000, the prescribed amount is US$1,000,000 plus 10% of the amount by which net retained premium exceeds US$5,000,000.
In the case of an insurer carrying on long-term business the minimum margin of solvency shall be at least the minimum amount of paid up capital as prescribed in sub-regulation (a)(ii) of the Ordinance.
In the case of an insurer carrying on long-term business and other business the minimum margin of solvency shall be the aggregate of the amounts required by sub-regulations (a) and (b) of the Ordinance, in respect of both categories of business.
For the purposes of calculating the margin of solvency of an insurer, the registrar shall take into account all assets of the insurer that he reasonably considers to be allowable and shall exclude all those that he reasonably considers to be not allowable.
Insurance: Related Downloads
Financial Services Regulatory Commission, Nevis Branch
P.O. Box 689, Main Street
Tel: (869) 469 - 1469
Fax: (869) 469 - 7739