Nevis
![\"Nevis](\"UserFiles/image/map-caribbean-nevis.gif\") In recent years, Nevis has become known as home to a very large number of reinsurance companies which have been established there without any licensing requirements. Now, the Nevis Island Government, as part of an overall policy of ensuring that the jurisdiction has a regulatory regime and regulatory standards in keeping with international best practices, has enacted the International Insurance Ordinance, which came in to effect on November 1, 2004. As a result, all international insurance companies established in Nevis must be registered.
The main regulatory features include:
- Insurers must be registered
- Company name is subject to approval
- Minimum of two directors
- Provision for statutory funds allowing for segregation of risks
- Flexibility on allowable assets as set out in guidance notes
- Annual audit of all insurers (except "Allied" Captives and "Allied" Reinsurers)
- Actuarial valuation of life insurers every 3 years
Capital, Margin of Solvency and Government Fees
Type of Company
|
Minimum Capital
|
Licence Fees: Application
|
1st Year
|
Annual
|
| Captive - single owner |
US$ 10,000 |
US$ 380 |
US$ 1,500 |
US$ 1,000 |
| Captive - 2 to 4 owners |
US$ 20,000 |
US$ 380 |
US$ 1,500 |
US$ 1,000 |
| Captive - 5 or more owners |
US$ 50,000 |
US$ 380 |
US$ 1,500 |
US$ 1,000 |
| Reinsurer |
US$ 75,000 |
US$ 380 |
US$ 1,500 |
US$ 1,000 |
| Long-term insurer |
US$ 185,000 |
US$ 2,000 |
US$ 2,000 |
US$ 1,000 |
| General insurer (incl 3rd Party business) |
US$ 185,000 |
US$ 2,000 |
US$ 2,000 |
US$ 1,000 |
| Allied Reinsurer |
US$ 10,000 |
US$ 380 |
US$ 500 |
US$ 500 |
The minimum solvency margin for long-term insurers is US$185,000. For all other insurers it is 20% of NRP up to NRP of US$5,000,000 plus 10% of NRP in excess of US$5,000,000 subject to a minimum equivalent to the minimum capital required.
An Allied Reinsurer is one that specifically reinsures one named fronting carrier.
Application
When applying for an insurance license, the applicant company must provide a detailed business plan accompanied by 5 year financial projections.
The Nevis regulator aims to process all applications within 2-4 weeks.
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