The insurance industry in TCI has developed quickly since the introduction of the Insurance Ordinance 1989 and the Insurance Regulations 1990. A particular feature of the legislation is the opportunity for cost effective operation of pure captives and specialist insurance companies serving niche markets.


The Insurance Ordinance and the Insurance Regulations cover licensing of insurance companies writing general insurance and long-term insurance, both domestic and international, as well as the licensing of insurance managers, brokers and other insurance personnel. There are strict rules of compliance in those activities which affect operating standards and protection of the insured. The insurance legislation is nevertheless designed to accept new concepts and programmes specifically tailored to meet emerging markets in the insurance industry.

One significant emerging market specifically recognised by TCI law is the restricted market reinsurer qualified under section 7(1 1) of the Ordinance. The 7(1 1) company is restricted to the provision of reinsurance only to named and acceptable insurance carriers already regulated in an approved jurisdiction. This particular product offers considerable scope to the market as the company is exempted from certain reporting functions and licensing fees. The insurance activities of such a company are already regulated within the jurisdiction of the main carrier. A typical example is the agent-owned reinsurer which offers mutual benefit in that the agent can enhance his income by participating in the risk whilst the carrier has comfort in knowing that, by participation, the agent will be diligent in his analysis of the risk prior to placing it.


The 1995 Guidelines on the Issuance of Insurance Licences give full details of the requirements for licensing. The main criteria can be summarised as follows:

1) The submission of a detailed Business Plan covering stipulated areas such as anticipated premium income by category, assessment of risk factors, reinsurance programme and expected loss ratios;

2) The submission of detailed biographical affidavits on the beneficial owners, directors and management;

3) Appropriate capitalisation of the proposed insurance company. Although companies engaged in general insurance should have a minimum capital of US$ 1 00,000 and those engaging in long term insurance a minimum capital of US$180,000, the desired capitalisation of the company will be determined by the ratio of its net worth to premium volume projected in the Business Plan;

4) identification, where appropriate, of the local resident representative, the insurance manager, the auditor and, for life insurance companies, the actuary;

5) Details of acceptable arrangements for business production, underwriting and claims handling; and

6) The company's incorporation papers.


The growing insurance market in TCI is supported by a competent, professional infrastructure including insurance managers, major accounting firms, banks and other legal and professional bodies.

The legislation and regulatory requirements allow for the establishment of a range of cost-effective insurance companies for both international and domestic purposes.

The information provided was correct in July 1996.

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.