This section provides links to relevant laws, regulations, instructions, rules, codes, guidance and other documents that govern the Nevis International Insurance Department.
The legislations hereunder provide the supervisory framework for the supervision and regulation of International insurance companies. The Nevis International Insurance division is governed by the Nevis International Insurance Ordinance 2004 as amended. In keeping with good governance and regulations, registered insurance companies must abide with the Nevis Business Corporations and follow the rules set out by the NIIO 2004, as amended.
The key regulatory features of the Nevis International Insurance product are:
- Every registered insurer must have a registered agent or insurance manager resident in Nevis. An Insurance Manager may be non-resident subject to the approval of the Registrar of International Insurance and in this case, the insurance manager must also appoint a registered agent.
- Generally, cash, debt securities, precious metals, irrevocable letters of credit, equities, mutual funds, commercial loans, premiums receivables and reinsurance receivables are considered allowable assets. However, if an insurer wishes to hold assets other than those generally allowed, he must seek guidance from the Registrar of International Insurance.
- Registered insurers holding a General Insurance, Long-Term Insurance or Reinsurance license must submit annual audited accounts. Registered insurers holding a Captive Insurance, Allied Reinsurance or Allied Annuity Insurance license must submit financial statements and tax returns, as filed and accepted by the relevant authority in the country of origin (or where filed); however the Registrar at his/her discretion may request audited financial statements for further analysis of the insurance company’s financial stability.
- An insurer of long-term insurance business must file an actuarial valuation of its assets and liabilities, every three years at the end of its financial year.
- A Registered Insurer licensed as an allied reinsurer cannot issue contracts with the consuming public, or otherwise act as a primary insurer. A Registered Insurer, upon approval from the Registrar, may be allied to a maximum of five (5) primary insurers, provided that it is reinsuring a different line of business from each primary insurer.
- A person registered as an insurance manager or a registered agent or any person acting as an insurance manager or an registered agent shall not directly or indirectly be interested as a shareholder in or an officer or employee of any registered insurer for which he acts as manager or registered agent.
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.
|Allied Annuity Company||450||1,500||1,500|
|Long Term Insurance||2,500||3,000||3,000|
|Penalties for late filing of any of the above renewal fees (to be paid in addition to renewal fee):-|
|(a) After January 31||1/2 of applicable annual renewal fee|
|(b) After June 30||a sum equal to the applicable annual renewal fee|
Other Fees (USD)
|Certificate of Endorsement||10|
|Certificate of Incorporation||10|
|Change of Shareholder/Director/Other Control Person||300|
|Approval for Issue, Transfer, Disposal of shares where ultimate beneficial ownership remains the same||100|
|Change/ Amendment to the business plan||200|
|Other Miscellaneous request||200|
|Request for extension of submission of annual accounts||300|
|Request for waiver of submission of annual accounts||200|
|Request for a name change||200|
|Request for change in auditor||300|
|Request for cancellation of licence||200|
|Request for re-domiciliation (outward)||200|
|Request for dissolution/voluntary wind up||200|
|Late submission of annual accounts (General & Long Term)||1500.00 with 150.00 for each additional day for failing to submit|
|Late submission of annual accounts (Other)||200 with 50.00 for each additional day for failing to submit|
It is essential that all prospective applicants familiarize themselves with the relevant local insurance laws, regulations, rules and codes, including the anti money laundering requirements, before applying for a license to become a registered insurer in Nevis’ jurisdiction. An international insurer applicant should contact one of the licensed insurance managers in Nevis to discuss any management requirements. Please be aware that the Financial Services Department is unable to make any recommendations in this respect.
It is recommended that prospective applicants contact the Department at the earliest possible opportunity to discuss their outline proposals.
Should a prospective applicant wish to proceed with a formal application for licensing, a completed application form, together with the relevant fees and all necessary documentation, should be submitted to the Department for processing.
The required documents are as follows:
In order to apply for a registered insurer, registered Insurance Manager or registered agent’s license the following must be submitted to the Nevis Financial Services Department:
Completed Application form –
- Form 1 – Insurance Manager, Registered Agent: Application for Insurance Manager's or Registered Agent's Licence
- Form 3 – Captive: Application for Captive Insurer's Licence
- Form 4 – General, Long Term, Reinsurance: Application for General and or Long-Term or Re-Insurer's Licence
- Form 5 – Allied Reinsurance: Application for Allied Insurer's Licence
- Form 7 – Insurance Broker and Insurance Adjusters: Application for Insurace Broker's or Insurance Ajuster's Licence
- Completed Personal Questionnaire Form (Form 2) (all directors, beneficial owners and shareholders, managers and officers) At least 2 directors is required – Section 34 of the Ordinance
- Completed Insurance Manager Undertaking Form (Form 6) (all beneficial owners of the entity to be registered)
- Application fee
- Due diligence documentation must be submitted with the application for each control person (directors/ shareholders/managers/officers) who have completed a Form 2, this includes:
- Notarized passport declaration pages or government issued photo ID
- Utility bill confirming address (dated within 3 months of application date)
- 2 references: 1 professional reference (from accountant, lawyer, or administrator etc), 1 bank reference (on company stationery) attesting to good standing of individual
- Police record (preferred) and/ or notarized criminal history declaration form or affidavit
- Curriculum vitae for each control person (directors, manager, officers). For each director it is preferred that skill and expertise along with professional qualifications be highlighted.
- Annual accounts for 2 years preceding year of application, of each shareholder which is a body corporate holding more than 10% of the applicant’s issued share capital or total voting rights, together with similar accounts for the parent body, if any, of each such body corporate.
- Business plan must be submitted with application
- Financial projections (3-5 yrs minimum) including Pro Forma Income Statement, Balance Sheet and Cash Flow Statement
- Documents by which the body corporate is to be constituted such as Articles of Incorporation, Memorandum of Association, Articles of Association, By-laws etc. If not yet incorporated attach the proposed documentation.
- Insurance Manager/ Registered Agent Agreement (ALLIED REINSURANCE AND ALLIED ANNITY).
- A list of all insurers whom the applicant is, or will be engaged to act as manager or consultant (INSURANCE MANAGER/ REGISTERED AGENT)
- External Due Diligence Fee of US 5000 per non national control person (INSURANCE MANAGER/ REGISTERED AGENT/ GENERAL INSURANCE/ LONG TERM INSURANCE)
- An undertaking from company management that risks and premiums will only be assumed from named and approved primary company; (ALLIED REINSURANCE)
- Specimen Contracts indicating (i) the annual maximum frequency and amount of contribution; and (ii) maturity (ALLIED REINSURANCE)
- Registration fee is required to be paid before the applicant receives the license.