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Getting Insured in the Bahamas |
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The insurance provided for the international market is one of the specialties of the Bahamas. The infrastructure and legal system that the Bahamas provide is significantly helpful in building the positive image of insurance in the Bahamas.
There are 2 insurance laws that govern insurance licensure and establishment. These laws are the Insurance Act 1969 and the External Insurance Act 1983. Under these laws a minimum of $100,000 to $300,000 net worth proportional to the ratio of capital and surplus is given. Annual financial audit is required to be filed along with conducting the business as stated in the plan that was initially stated.
These insurance application policies are governed by distinctions under the Bahamas’ Domestic and International Market. The British companies are, in turn, in charge of property insurance. The International Market is also known as the Captive Market. Though it may be a small field for the insurance industry in the Bahamas, majority of the captive market come from Europe and the United States. Furthermore, the Bahamas has a good relationship and communication with the United States and Canada. Possessing world class vacation destinations and sites for recreational activities, the Bahamas is further inviting more and more international market captives to apply under its laws.
Licensure is a must in order to avail insurance if one wishes to establish a company or corporation. In the Bahamas, to be issued a license by the Minister of Finance, a company must be recommended by the Registrar of Insurance Companies first. In order to obtain the needed recommendation, certain application forms must be filed under certain circumstances and laws. To satisfy the much needed requirements, the application would need information on the business ethics concerned, qualifications of those who would be involved in future operations and of course basic information on those people qualified to be involved. The security regarding reinsurance outward the country should be declared as well. To top off the application, fees include $2,500 upon registration then $2,500 annually after establishment of business.
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