Insurance laws Saint Kitts and Nevis
Saint Kitts and Nevis maintains a dual insurance regulatory framework, with distinct systems for domestic and international (offshore) insurance operations.
🇰🇳 Domestic Insurance Regulation (St. Kitts & Nevis)
The Financial Services Regulatory Commission (FSRC) is the primary authority overseeing the non-bank financial sector, including both domestic and captive insurance companie. Established under the Financial Services Regulatory Commission Act, No. 22 of 2009, the FSRC supervises insurance entities to ensure compliance with local laws and international standard.
Key Legal Framework
Insurance Act, 2009 This Act governs the registration and operation of insurance companies, brokers, agents, and adjusters within the Federatio. It outlines the requirements for licensing, conduct, and solvenc.
Financial Services Regulatory Commission (Amendment) Bill, 2024 Passed in November 2024, this amendment streamlines the FSRC's operations by reducing the mandatory meetings from nine to five annually, enhancing efficiency without compromising regulatory oversigh.
Licensing and Compliance
Insurance Brokers Entities must be incorporated under the laws of Saint Kitts and Nevis and submit various documents, including a Certificate of Incorporation, proof of address, identification documents for directors and senior managers, and reference. Additionally, brokers are required to maintain professional indemnity insurance of at least EC$500,00
Insurance Intermediaries The Act defines roles such as insurance agents, brokers, and sales representatives, each with specific registration requirements and restrictions to prevent conflicts of interes.
🏝️ International Insurance Regulation (Nevis
Nevis, a part of the Federation, operates under the Nevis International Insurance Ordinance (NIIO), 2004, which provides a comprehensive framework for international insurance companies, including captive insurers and allied reinsures.
Key Features
*Types of Insurance Entities:The NIIO recognizes various entities, including General Insurance, Long-Term Insurance, Reinsurance, Captive Insurance, Allied Reinsurance, and Allied Annuity Insurane.
*Minimum Paid-Up Capital: Requirements vary by entity type, ranging from US$10,000 for single-owner captives to US$185,000 for long-term or general insurance businesss.
*Solvency Requirements: Insurers must maintain a minimum margin of solvency, calculated based on net retained premiums and other factos.
*Asset Regulations: The ordinance specifies allowable assets for insurers, including cash, debt securities, equities, and reinsurance receivabls.
*Licensing Process: prospective insurers must submit a completed application form, due diligence documentation for directors and officers, and pay the prescribed fes Applications should be made through licensed insurance managers in Nevs.
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