Insurance laws Antigua and Barbuda
Antigua and Barbuda's insurance sector is governed by a comprehensive legal and regulatory framework designed to ensure market stability, consumer protection, and financial solvency. Key components include:
🏛️ Primary Legislation
Insurance Act No. 13 of 2007:This foundational law regulates the conduct of insurance business, establishing licensing requirements, solvency standards, and operational guidelines for insurers
Insurance Amendment Act No. 6 of 2011:Amended the original Act to address emerging issues and enhance regulatory oversight
Insurance Levy Act (Cap. 219):Imposes a monthly levy on registered insurers and brokers, with penalties for non-compliance
Third Parties (Rights against Insurers) Act: Allows third parties to claim directly from an insurer in cases where the insured becomes bankrupt or insolvent
🏢 Regulatory Authority
The Financial Services Regulatory Commission (FSRC) is the primary body overseeing the insurance industry. It is responsible for licensing insurers, enforcing compliance, and conducting annual on-site examination. International insurers must also maintain a physical presence in Antigua and Barbud.
📋 Licensing & Operational Requirements
*Application Process: Insurers must submit a comprehensive application, including financial statements, business plans, and proof of compliance with local las Local insurers must demonstrate a solid understanding of the local market, while foreign insurers are often required to establish a local presence or partnership.
*Financial Standards: Insurers must adhere to capital adequacy and solvency margin requirements, ensuring they can meet policyholder obligations.
*Annual Reporting: Companies are required to submit audited financial statements, including balance sheets, profit and loss accounts, and reserve analyses, within four months of each financial year.
💰 Taxation & Fees
*Insurance Premium Tax: Imposed at a rate of 3% on premiums.
*Corporate Income Tax: Resident companies are subject to a 25% corporate income tax on worldwide income. Non-resident companies are taxed on income derived from Antigua and Barbuda.
*Windfall Tax: Certain companies, including insurers, are subject to a 10% windfall tax on net profits until the end of 224.
*Registration & Licensing Fees: Application fees for both local and foreign insurers are set at $5,0. Annual registration fees for brokers and adjusters are also $5,00.
🛡️ Consumer Protections
Policy Transparency: Insurers must provide clear and transparent terms in insurance contracts, ensuring policyholders are well-informed about their rights and obligations.
Complaint Handlin: A system must be in place for addressing consumer complaints and disputes, allowing consumers to seek redress if issues arise.
Mandatory Insurance: Certain types of insurance, such as motor third-party liability (MTPL), workmen’s compensation, marine third-party liability, and personal indemnity insurance for insurance brokers, are compulsory.
🌐 International Insurance
International Business Corporations (IBCs) intending to carry on international insurance business must be licensed under the IB ct. They are prohibited from establishing subsidiaries or branches and/or providing services on the Internet without prior approval from the FRC. A physical presence in Antigua and Barbuda is required, and licensees are subject to annual on-site examinations.
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