Cyprus Insurance Companies – Licensing FAQs and Important Considerations
Insurance companies from 3rd countries and the UK are using Cyprus as their entry point within the EU to sell their insurance products and services. As a result, Cyprus is becoming a hub for insurance EU passporting due to its straightforward licensing applications and reasonable and simple licensing requirements.
Cyprus Insurance Company Set up:
Cyprus Company Created and Regulated by the Registrar of Cyprus Insurers usually acting for an overseas (3rd country or to a less extent EU) insurance company. The Cyprus company sells its products and services via simple EU passporting applications.
Given the success we had with such enquiries we have decided to list below the most common enquiries asked by prospect and current clients.
Cyprus Insurance Companies – FAQs
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How long does it take to receive the Insurance Agents / Brokers License?
It takes 2-3 months, but you need to take into account the following:
Company must be formed
Its Memorandum & Articles of Association (M&A) must include specific provisions to its insurance activities; they must clearly stipulate that the company can trade as an insurance Agent or Broker.
Company Name – tricky
Your preferred company name must be approved by two registrars!
First, the name must be approved by the Cyprus Registrar of Insurers and then by the Cyprus Registrar of Companies. The Cyprus registrar of companies usually accepts the approved name by the registrar of insurers.
Timeframe: Each name application takes usually <10 working days to be approved so be prepared that both name applications could take 1 month to be approved.
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What about Company substance? Is it required?
Yes. Regulated entities in Cyprus must have local substance. Office and staff although the Insurance Regulator does not examine these. Such requirements are implied by the local social insurance and tax office and are not part of the licensing application process.
In addition, management must have passed its Insurance Certifications which will be checked by the regulator, and this is conditional for the license to be granted.
However different requirements exist for insurance agents and brokers. Detailed breakdown of the differences can be obtained here.
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Licensing – what is the Key requirement?
Licensing for an insurance agents or brokers license Key requirement are the credentials of one of the directors as they should be holders of professional insurance qualifications.
Even though the differences in licensing requirements between insurance agent and broker are large, if management can not have the appropriate credentials the application will be rejected.
Detailed breakdown of licensing requirements can be obtained here.
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Cyprus Company Set Up – applicable scenarios
Application for General Insurance License: Once of the directors of the Company must be a holder of an international accredited certificate for general insurance acceptable by the Cyprus Insurance Regulator.
We can assist you with this process.
Equivalently, a Life insurance License: One of the directors of the Cyprus Company musty be an international accredited certificate for general insurance acceptable by the Cyprus Insurance Regulator.
We can assist you with this process.
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Composition of the board/ management of the Company
The Cyprus Registrar of Insurers can accept various combinations of the board composition as long as the substance and regulatory requirements mentioned above are met.
Simple Scenario: Cyprus company must have a local director residing in Cyprus holding International Insurance Accreditations relevant to the operations of the Company.
Common Scenario: Cyprus company has a local director with no insurance credentials and an overseas director (residing anywhere but not in Cyprus) who holds the International Insurance Accreditation relevant to the operations of the Company.
As long as the person holding the right credentials (qualifications) is at the board this requirement is met.
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EU Passporting via Cyprus
Is it easy? Fast?
Once you obtain a Cyprus Insurance License then passporting becomes easy as in Cyprus it is a structured and relatively straight process.
Passporting usually takes ½ months to be approved by the Cyprus Registrar of Insurers.
Once we obtain the local Cyprus (EU) insurance license we will then apply for EU passporting. Specific EU countries must be specified in the application.
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Cyprus Companies acting as agents of overseas companies.
Cyprus Limited companies are becoming increasingly popular for acting as insurance agents to overseas insurance Companies, usually outside the European Union.
Insurance companies from 3rd countries find Cyprus their ideal partner for passporting as Cyprus:
- Fast and relatively straight forward licensing process
- Cheaper costs to set up and maintain the agents / broker's license
- Low tax costs and great relocation incentives (read here for more benefits)
- Passporting is the simplest in Europe
- Cheap application and consultation fees when compared to other EU countries.
About Us
CYAUSE Audit Services has extensive experience in the insurance industry has helped tens of insurance brokers and agents register and get licensed by the local Cyprus regulator granting them passporting access to the rest of the European Union.
CYAUSE Audit Services is an Audit & Assurance firm with offices in Cyprus and the UAE. During 2015 we have been awarded by I.C.P.A.C and the A.C.C.A (local and international association of Chartered Certified Accountants) for the Quality of our Audit Services and our Office's Procedures.
Being a Truly International Audit & Assurance firm, we have associates from all over the world and we are constantly looking for new associates to expand our network further. At present, CYAUSE Audit Services operates internationally through its membership with BKR International amongst the largest American associations in the world, Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience. Our network covers almost 40 jurisdictions with over 2,000 professionals, it supports more than 10,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and processes at least 170,000 payslips globally.
CYAUSE Audit Services Ltd is also a member of BKR International one of the biggest US Accounting Associations of the word and the 3E Accounting Network, an international accounting network which originates from Hong Kong and has more than 80 members from all over the world.
Learn More about Cyprus Corporate Environment
Information about CYAUSE Audit Services and the Cyprus Corporate & Tax System can be obtained from our Website or our YouTube channel which provides valuable information about the Corporate & Tax Environment of Cyprus.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
