Anguilla is a British Overseas Territory in the Eastern Caribbean. As an international financial centre, it offers a full range of financial services and products and boasts a particularly impressive and efficient online corporate registry, "ACORN". Insurance business is regulated by the Financial Services Commission applying the provisions of the Insurance Act 2004. The regulatory regime in Anguilla has demonstrated itself to be both particularly flexible and extremely responsive with an excellent turnaround time for applications. The Insurance Act 2004 includes powerful asset protection provisions for long-term insurance business and the Protected Cell Act allows for the formation of Protected Cell Companies.
The main regulatory features include:
- Insurers must be licensed and must appoint a resident insurance manager
- Minimum of two directors
- Long-term protected premium accounts and Protected Cell Company provisions
- Flexibility on allowable assets as set out in guidance notes
- Annual audit of all insurers
- Annual actuarial valuation of long-term insurers
- Powers of exemption
Capital, Margin of Solvency and Government Fees
All insurers carrying on foreign (non-Anguillian) business have a Class “B” license:
|Type of License
||Insurance License Fee
|Class “B” Unrestricted (including long-term)
|Class “B” General
|Class “B” Association
|Class “B” Group
|Class “B” Single (pure captive)
The minimum solvency margin for long-term insurers is equivalent to the minimum capital requirement. For all other insurers it is 20% of Net Retained Premium (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.
Insurance license application fee is US$500. Incorporation fee is US$298 and the annual corporate registry fee is US$56. If an insurance license is issued after 1st July, only half the insurance license fee will be payable in the year of formation.
When applying for an insurance license, the applicant company must provide a detailed business plan accompanied by 5 year financial projections.
The Financial Services Commission is very responsive and applications are likely to be fully processed within 4 weeks.