Investing in Bahamian Insurance

If you are looking for a lucrative BahamianFinance oversees this sector. All information
investment opportunity, insurance is one of theprocessed by the Registrar is deemed highly
fastest growing Bahamas financial services available.confidential, although members of the public may
As one of the world's leading offshore financialinspect the Register General's share register.
centers, the Bahamas has established itself as aThere are minimal reporting requirements in the
leader in the insurance industry. Second perhaps onlyBahamas. The company must operate according to
to Bermuda in terms of gross dollar amounts ofits business plan and an audited financial statement
policies written, the Bahamas' tax neutrality,must be filed annually, within six months of the close
statutorily enforced privacy laws, andof the businesses financial year.
investor-friendly government policies make it easy forCompanies planning to act as direct insurers may be
legitimate insurance business interests to establishrequired by the Registrar to place deposits either
themselves in this island nation.locally or in the state where the business is being
Companies seeking to establish an insurance businessconducted. There is no legal requirement for funds to
in the Bahamas are licensed by the Finance Ministerbe held locally.
following a thorough application process and uponApplication
satisfying the Registrar's requirements. Companies willIf you would like to take advantage of this Bahamas
need to use Companies Act incorporation, asfinancial service, the government of the Bahamas has
International Business Companies are not allowed tostreamlined their business processes to make it easy
engage in insurance business in the Bahamas.for you. The Bahamas wishes to entice foreign
Domestic Insuranceinvestors and as such has few requirements in order
The domestic insurance market refers to theto establish an insurance business. Applicants must
insurance of local risks by locally or foreign ownedprovide:
insurers. This industry maintains a fairly large presence• The identity of all key parties such as
in the Bahamas, supported by seven locally ownedsponsors, shareholders, directors, officers, and
and 49 foreign-owned insurers. Business can bemanagers must be provided.
written directly or offered via brokers and agents.• Applicant must be able to prove the
International (Captive) Insurancefitness for duty of those parties involved in the
The captive insurance market refers to the insuranceoperation.
of foreign risks by investors working through the• All parties involved must demonstrate
Bahamas. The majority of captives in the Bahamasgood business ethics.
are of U.S. origin, and the others are from Europe.• Applicants must be able to establish the
Captive insurers must file with the Registrar, whofeasibility of the business.
expects to see applications from investors with at• The security of any outward reinsurance
least $250,000 initial capital, and the amount that ismust be established.
proposed ought to be more than sufficient toOnce these requirements have been satisfied, a
support the estimated volume of business.knowledgeable advisor can have your business set up
Initial capitalization should be cash. Letters of creditin a short amount of time.
would only be acceptable if they representedInternational investors seeking tax-neutral financial
amounts above and beyond the necessary level ofinstruments may review our Bahamas financial
working capital.services and Bahamas tax exempt case studies,
Operational Requirementsprepared by the specialists at LOM Financial Services.
The Office of the Registrar of Insurance's Ministry of