Insurance Act, 2008 (No. 1 of 2008)

Summary

This is the Insurance Act, 2008, the principal law governing the licensing, regulation and supervision of insurance business, insurance managers, insurance intermediaries and loss adjusters in the Virgin Islands (BVI). It replaces the former Insurance Act, 1994, establishes a licence category system (categories A to D plus intermediary and manager licences), and sets out ongoing financial soundness, governance, actuarial, audit and reporting requirements for licensees, enforced by the BVI Financial Services Commission.

• Licensing: Prohibits carrying on insurance business, or acting as an insurance manager, intermediary or loss adjuster, in or from the Virgin Islands without the relevant licence issued under the Act; also restricts dealings with unlicensed insurers.
• Financial soundness: Licensed insurers must maintain a financially sound condition, contributed capital, and a solvency margin, and are restricted on distributions, loans/advances, use of derivatives, reinsurance arrangements, and keeping of assets in the Virgin Islands.
• Corporate governance: Requires appointment and vetting of directors and senior officers, appointment of an insurance manager (or representative for foreign insurers), and adequate management systems and controls.
• Actuarial oversight: Requires appointment of an actuary for relevant insurers and periodic actuarial investigations and reports, with powers for the Commission to direct further investigations or replace the actuary.
• Financial statements and audit: Licensees must prepare financial statements, appoint an auditor, and submit audited financial statements and reports to the Commission, subject to Commission powers over auditor appointment and time extensions.
• Ongoing filings: Licensees must submit returns and other required information to the Commission, maintain records, and comply with market conduct, advertising and change-of-name provisions.
• Transitional provisions: Persons licensed under the former Insurance Act, 1994 are deemed to hold the corresponding new licence category, and the Commission must issue replacement licences within three months of the Act's commencement; insurers authorised for both general and long-term business had to apply for a licence covering one or more specific classes on or before 31 December 2009.

The Act also repeals the Insurance Act, 1994 and makes consequential amendments to related legislation, and sets out offence provisions for false or misleading statements and non-compliance. Its substantive provisions commence on dates appointed by the Governor by proclamation, which may differ for different sections.

Key obligations

• No person may carry on insurance business, or hold themselves out as doing so, in or from the Virgin Islands without the relevant licence issued under section 8.
• Licensed insurers must maintain a financially sound condition, contributed capital and a solvency margin as prescribed in the Regulatory Code.
• Licensed insurers must maintain assets in the Virgin Islands as required and comply with restrictions on distributions, loans/advances and derivatives.
• Licensees must appoint directors and senior officers in accordance with the Act and obtain authorisation before opening branches, representative offices, or incorporating/acquiring subsidiaries.
• BVI insurers must appoint an insurance manager; foreign insurers must appoint a representative in the Virgin Islands.
• Relevant licensees must appoint an actuary and ensure actuarial investigations and reports are conducted as required or directed by the Commission.
• Licensees must prepare financial statements, appoint an auditor, and submit audited financial statements and reports to the Commission.
• Licensees must submit returns and report required information to the Commission and maintain proper records.
• A person deemed to hold a licence under the former Act must receive a replacement licence from the Commission within three months of the Act coming into force.
• Insurers authorised to carry on both general business and long-term business had to apply to the Commission for a licence specifying one or more classes of general or long-term business on or before 31 December 2009.
• Licensed insurance agents and brokers must not deal with, solicit for, or introduce clients to unlicensed insurers, subject to limited exceptions.

Applies to

licensed insurers (categories A, B, C, D), BVI insurers, foreign insurers, insurance managers, insurance intermediaries (insurance agents and insurance brokers), loss adjusters, auditors, actuaries

Deadlines

• within three months of the coming into force of this Act: The Commission must issue each deemed licensee with a replacement licence under the new Act.
• on or before 31 December 2009: Insurers authorised under the transitional provisions to carry on both general business and long-term business must apply to the Commission for an insurance licence specifying one or more classes of general business or long-term business.
• such date or dates as appointed by the Governor by proclamation: Commencement of the Act's provisions, which may differ for different provisions and purposes.

Related documents

• Proclamation (SI 2009 No. 63): Insurance Act, 2008 Commencement commences this document
• Insurance Act (Revised 2020) replaces this document