Source: The Bahamas Handbook © 2009

Responsibility for the prudential regulation of insurance activity in or through The Bahamas rests with the Insurance Commission of The Bahamas (formerly the Office of Registrar of Insurance Companies). It is concerned with the ongoing monitoring and control of insurers, agents, brokers, salesmen and, internationally, underwriting managers and external insurers.

All local insurance operations (as distinct from offshore, or captive, insurance) are covered by the Insurance Act, 2005, which was amended in 2009. Registered insurers writing local business pay a premium tax of 3% of gross premiums collected each quarter.

Offshore insurance
An offshore insurer is an insurance company that is either incorporated in The Bahamas under the Companies Act, 1992, or incorporated elsewhere but registered under The Bahamas Foreign Companies Act and:

1. is registered under the insurance laws of The Bahamas;

2. insures only risks located outside The Bahamas; and

3. manages its business from within The Bahamas.

The Bahamas offers a convenient and professionally administered location for such operations. There is a well-equipped and capable regulatory office (the Insurance Commission of The Bahamas) and an adequate professional infrastructure to support such business as may materialize.

The activity of offshore insurance companies is regulated by the External Insurance Act, 2009.

Commission’s requirements
Before an offshore company may be registered, the Insurance Commission of The Bahamas must be satisfied with:

1. fitness of key parties to engage in the proposed operation;

2. business ethics involved;

3. feasibility of the planned business; and

4. security of outward reinsurance.

This process may be facilitated by introductory meetings between the applicant and the Commission.

Both insurance laws lay down the minimum capital and surplus requirements with requirements for external insurers based on the nature and scope of business presented.

For copies of insurance laws and regulations, contact Government Publications, PO Box N-7147, Nassau, tel (242) 322-2410 or visit www.bahamas.gov.bs or www.icb.gov.bs.

Captive insurance
The captive insurance industry is governed in The Bahamas by the External Insurance Act, 2009. The Act allows companies to underwrite business from outside The Bahamas, confers advantageous solvency margins and allows captives to trade in any currency (except Bahamian).

Other provisions of the Act include a confidentiality clause to protect the policy holder and tax exemptions fora period of 15 years from the date of first registration.

For more information contact the Insurance Commission of The Bahamas, PO Box N-3017, Nassau, tel (242) 397-4100, fax (242) 328-1070.