INTERNATIONAL INSURANCE

  1. How does the domestic insurance sector differ from the international insurance sector?

The domestic insurance sector serves the general public (including residents) in St Lucia whereas, entities in the international insurance sector are prohibited from undertaking insurance business with residents or from investing in any asset which represents a claim on any resident.

  1. What is a captive insurance company?

A captive insurance company

  1. is wholly owned by one or more persons and intends to carry on an international insurance business consisting only of insuring the risks of those persons; or
  2. is an affiliate of a group and intends to carry on an international insurance business consisting only of insuring the risks of any other affiliates of that group or of its own shareholders.

 

  1. What is the difference between a protected cell company and an incorporated cell company?

The current legislation in Saint Lucia does not provide for the establishment of protected cell companies.  However, an incorporated cell company (ICC) is an international business company created for the purpose of doing insurance business using incorporated cells; each incorporated cell is separately incorporated, making them distinct legal entities. 

  1. What information must be included in the due diligence package?

The due diligence package should include at a minimum, the following in respect of each promoter of the entity:

  • Name (showing any previous name and all aliases);
  •   Date and place of birth (evidence: passport or birth certificate);
  • Current address and supporting utility bill. Private addresses for the past 10 years;
  • Data pages (including photograph) of all passport(s), duly                             notarised;
  • Social Security Number (evidence: social security card);
  • Drivers licence, duly notarised;
  • Curriculum Vitae;
    • A Banker’s reference;
    • Notarized Statutory Declaration.
    • Police Clearance
    • Undertaking to provide and set apart the minimum fully paid –up capital, before and at the time business commences, signed by all requisite shareholders.

 

  1. What is the minimum number of directors required for an international insurance company?

Section 17(1) of the International Insurance Act indicates that ‘a licensee shall have at least 2 directors, all of whom are natural persons and one of whom shall be a resident’.

For incorporated cells, Section 17(4) of the International Insurance Act indicated that ‘the majority of directors in an incorporated cell shall be directors of the incorporated cell company to which it is linked’.

  1. In what types of financial institutions or securities should the must the Statutory Deposit be placed or invested?

An eligible company may deposit or invest the applicable sum by any of the following methods:

  1. Treasury bills issued by the Government of Saint Lucia;
  2. Bonds and debentures issued by the Government of Saint Lucia;
  3. Deposits with the Saint Lucia Development Bank;
  4. Deposits with a bank licensed under the Banking Act; or
  5. Deposits with a financial institution approved by the Authority.

 

  1. Is the statutory deposit refundable?

 

Where an entity has ceased to carry on international insurance business, the statutory deposit is refunded subject to the Authority’s satisfaction that the licensee has paid all liabilities along with other financial commitments.

 

  1. Can an international insurance company be marketed to local persons?

No, entities in the international insurance sector are prohibited from undertaking insurance business with residents.

 

  1. When are Audited financial Statements due from licensees?

The audited accounts shall be forwarded to the Authority within three (3) months of the end of the financial year of the licensee, unless prior approval for an extension has been granted by the Authority.

  1. What is the solvency requirement for insurance companies?

This is the minimum amount by which the total value of an insurer’s allowable assets must exceed the total value of its liabilities.   These minimum amounts, which vary depending on the class of insurance, are in prescribed in the International Insurance Guidance Notes.

  1. How can payments be made to the Authority?

 

Payments can be are made to the Authority by making deposits to the call account of the Accountant General at the Bank of St Lucia Ltd (BOSL).

Name of Bank: Bank of Saint Lucia Limited

Account Name: Accountant General Financial Services Call A/C

Account Number: 902002464

A stamped copy of the deposit slip must be submitted to the FSRA as evidence of payment.

 

  1. Does the Authority accept payments by credit or debit card?

 

No, the Authority does not currently accept payments by credit card.