Anguilla Acts To License Captives

He added, "We have quite a lot of interest in passing business to Anguilla." Captive insurers will be allowed to form in Anguilla as soon as the bill is passed, he noted.

"Anguilla's existing insurance legislation dates from 1968 and provides only for insurance companies and associations of underwriters writing domestic insurance in Anguilla," Mr. Lawrence noted in an article on the Anguilla Web site.

"It is somewhat deficient in meeting modern standards for licensing and regulating the insurance industry."

He said Anguilla's newly drafted insurance act will provide for a number of different types of insurance operations. The types of licenses that may be applied for under the new legislation are: Class ?A' Insurer's License, Class ?B' Insurer's Unrestricted License, Class ?B' Insurer's General License, Class ?B' Insurer's Association License, Class ?B' Insurer's Group License, and Class ?B' Insurer's Single License.

The licensing regime calls for a detailed application and business plan for insurance intermediaries, including agents, brokers and insurance managers.

The business plan requires information on the structure and scope of the proposed insurance business, the type of policies to be issued, details of any intermediaries to be used, the proposed client base, administrative structure and controls to be put in place, reinsurance arrangements, proposed capital, and three-year financial projections.

Detailed personal questionnaires are required for all beneficial shareholders, directors and controllers of a company unless the applicant is a publicly traded company. Anyone doing insurance business in or from Anguilla must be licensed.

Captive insurers will be required to appoint an insurance manager within Anguilla, who will provide necessary accounting, administrative, underwriting and claims services to the captive, he said.