International Insurance

Legal Framework

The Nevis International Insurance division is governed by the Nevis International Insurance Ordinance 2004, as amended. Registered insurance companies must also comply with the Nevis Business Corporation Ordinance and follow the rules set out by the NIIO.

Key regulatory features

• 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, in which case the insurance manager must also appoint a registered agent.
• Cash, debt securities, precious metals, irrevocable letters of credit, equities, mutual funds, commercial loans, premiums receivable and reinsurance receivables are generally considered allowable assets. An insurer wishing to hold other assets must seek guidance from the Registrar.
• Registered insurers holding a General Insurance, Long-Term Insurance or Reinsurance licence must submit annual audited accounts.
• Registered insurers holding a Captive Insurance, Allied Reinsurance or Allied Annuity Insurance licence must submit financial statements and tax returns as filed and accepted by the relevant authority in the country of origin. The Registrar may at his or her discretion request audited financial statements for further analysis.
• 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. On approval from the Registrar it may be allied to a maximum of five primary insurers, provided it reinsures a different line of business from each.
• A person registered or acting as an insurance manager or registered agent must not, directly or indirectly, be interested as a shareholder in, or an officer or employee of, any registered insurer for which he acts.

Licensing

Types of insurance entity

• Allied Reinsurance – 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 only assumes risks and accepts premiums from that primary insurer.
• Allied Annuity – a company whose business entails only the issuance of annuity contracts and/or single premium life contracts, where premiums are accepted only from its parents or other persons of substantial relationship, personal or business, and the number of annuitants does not exceed ten.
• Captive Insurance Business – insurance business where the insured is a parent or affiliated company of the registered insurer, or a person in respect of whom the registered insurer is authorised by the Registrar to provide insurance.
• General Business – insurance business that is not long-term, reinsurance or captive business, including marine, engineering, aviation, transportation, motor, property liability, pecuniary loss, credit and guarantor, and miscellaneous personal insurance.
• Long Term Insurance Business – contracts of insurance on human life or to pay annuities on human life; contracts against accident or disease expressed to run for not less than five years or without limit of time; and contracts, whether by policy, bond or endowment certificate, providing a sum on a future date in return for one or more premiums.
• Insurance Adjuster – a person, not an employee of a registered insured but employable by insurer or insured, who investigates, qualifies and/or quantifies a loss experienced in relation to a covered risk.
• Insurance Broker – a person, not an employee of a registered insured, who arranges contracts of insurance between insurer and insured, gives advice facilitating the sale of insurance contracts, or is authorised by one or more insurers to enter into contracts of insurance, collect premiums and otherwise act as the insurer in dealing with the insured.
• Insurance Manager – a person who provides management services for one or more insurers, or holds himself out as a manager in relation to one or more insurers. It does not include keeping insurance business accounts for a registered insurer.

No person may act as an insurance manager for, or in relation to, a registered insurer unless registered in a register kept by the Registrar in accordance with regulations, and has paid the prescribed fee, registration fee and annual renewal fee.

Minimum paid-up capital

Minimum margin of solvency

The minimum margin of solvency is the amount by which an insurer’s assets must exceed its liabilities.

• For an insurer other than one carrying on long-term business, the minimum margin is at least the minimum paid-up capital prescribed in section 7(1)(b) of the Ordinance or, if greater: 20 per cent of net retained premium where that premium does not exceed US$5,000,000; or US$1,000,000 plus 10 per cent of the amount by which net retained premium exceeds US$5,000,000.
• For an insurer carrying on long-term business, the minimum margin is at least the minimum paid-up capital prescribed in sub-regulation (a)(ii) of the Ordinance.
• For an insurer carrying on both long-term and other business, the minimum margin is the aggregate of the amounts required under sub-regulations (a) and (b) in respect of both categories.
• In calculating the margin, the Registrar takes into account all assets he reasonably considers allowable and excludes those he reasonably considers not allowable.

Fees

Licence fees

Approvals and requests

Penalties

Fees are indicative; confirm current fees with the Commission before applying.

How to Apply

Prospective applicants should familiarise themselves with the relevant local insurance laws, regulations, rules and codes, including anti-money-laundering requirements, before applying.

An international insurer applicant should contact one of the licensed insurance managers in Nevis to discuss management requirements. The Commission cannot make recommendations in this respect.

Applicants are encouraged to contact the Department at the earliest opportunity to discuss outline proposals.

A formal application is a completed application form, the relevant fees and all necessary documentation, submitted to the Department for processing.

Required documents

• A completed application form: Form 1 for an insurance manager or registered agent, Form 3 for a captive, Form 4 for general, long-term or reinsurance, Form 5 for allied reinsurance, Form 7 for an insurance broker or adjuster.
• A completed Personal Questionnaire (Form 2) for every director, beneficial owner, shareholder, manager and officer. At least two directors are required under section 34 of the Ordinance.
• A completed Insurance Manager Undertaking (Form 6) for all beneficial owners of the entity to be registered.
• The application fee.
• Due diligence documentation for each control person who completed a Form 2: notarised passport declaration pages or government-issued photo ID; a utility bill confirming address, dated within three months of the application; two references, one professional and one bank reference on company stationery attesting to good standing; a police record, preferred, or a notarised criminal history declaration or affidavit; and a curriculum vitae.
• Annual accounts for the two years preceding the year of application for each shareholder that is a body corporate holding more than 10 per cent of the applicant’s issued share capital or total voting rights, together with similar accounts for its parent body, if any.
• A business plan.
• Financial projections covering three to five years minimum, including a pro forma income statement, balance sheet and cash flow statement.
• The documents by which the body corporate is constituted, such as Articles of Incorporation, Memorandum of Association, Articles of Association and By-laws. If not yet incorporated, the proposed documentation.
• An Insurance Manager or Registered Agent Agreement (allied reinsurance and allied annuity).
• A list of all insurers the applicant is or will be engaged to act as manager or consultant for (insurance manager and registered agent).
• An external due diligence fee of US$5,000 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 a named and approved primary company (allied reinsurance).
• Specimen contracts indicating the annual maximum frequency and amount of contribution, and maturity (allied reinsurance).

The registration fee must be paid before the applicant receives the licence.

Forms

The application and supporting forms. Each opens in the document viewer, where you can read, download or print it.

Legislation

The Ordinance, its regulations and the solvency guidance notes, together with the Nevis Business Corporation Ordinance under which insurers are incorporated.