Insurance laws Barbados
Barbados has established a robust and internationally recognised insurance regulatory framework, primarily governed by the Insurance Act, Cap. 310, and administered by the Financial Services Commission (FSC). The FSC oversees both domestic and international insurance activities, ensuring compliance with local laws and international standards.
🏛️ Legal Framework
Insurance Act, Cap. 310: This Act regulates the carrying on of insurance business in Barbados, providing the legal foundation for licensing and supervising insurance companies, intermediaries, and related entities
Financial Services Commission Act, 2010-21:Established the FSC as the regulatory authority responsible for supervising and regulating non-bank financial institutions in Barbados, including insurance entities
🧾 Licensing Classes
Under the Insurance Act, Cap. 310, the FSC issues three types of insurance licence:
Class 1 Licence For insurers underwriting related-party business (captive insurers.
Class 2 Licence For insurers underwriting third-party risk.
Class 3 Licence For insurance intermediaries, management companies, and holding companies.
🌍 International Insurance Business
Barbados is a preferred domicile for international insurance business, offering various structures to accommodate different needs:
**Qualifying Insurance Companies (QICs)*: Registered under the Insurance Act, QICs are entitled to tax concessions, including a low effective tax rate and exemptions from withholding taxes and exchange control.
**Exempt Insurance Companies (EICs)*: Previously regulated under the Exempt Insurance Act, EICs were incorporated under the Companies Act and applied for a license under the 1983 Exempt Insurance At However, the Exempt Insurance Act was repealed effective January 1, 209 All insurance entities, including EICs and QICs, are now regulated under the Insurance Act, Cap. 30.
📋 Regulatory Responsibilities of the FC
The FSC's Insurance Division is responsible or:
Assessing applications for licensing of insurance companies, intermediaries, and related entities.
Supervising and regulating licensed entities to ensure compliance with the Insurance Act and other relevant legislation.
Monitoring the financial condition of insurance companies to ensure they can meet their obligations.
Providing statistical and other information to stakeholders.
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