Insurance Act (Revised 2020)

Summary

This is the consolidated Insurance Act of the Virgin Islands (BVI), the primary statute governing the licensing, regulation and supervision of insurance business, insurance managers, insurance intermediaries (agents and brokers) and loss adjusters. It sets out who may carry on insurance business in or from the BVI, the licensing categories available, and the ongoing financial, governance and reporting obligations imposed on licensees.

• Licensing: Prohibits unauthorised insurance business and dealings with unlicensed insurers, and establishes categories of insurer and insurance intermediary licences with application and variation procedures.
• Financial soundness: Requires licensed insurers to maintain a financially sound condition, contributed capital, a solvency margin, and restricts distributions, loans and advances to connected persons.
• Asset and reinsurance controls: Requires maintenance of assets in the Virgin Islands, regulates reinsurance arrangements (including cut-through endorsements) and use of derivatives.
• Corporate governance: Requires appointment and vetting of directors and senior officers, appointment of an insurance manager, a representative for foreign insurers, and management systems and controls.
• Actuarial oversight: Requires appointment of an actuary for life and health business, actuarial investigations and reports, and compliance with prescribed actuarial standards.
• Records, accounts and audit: Requires licensees to maintain records, prepare and submit financial statements to the Commission, appoint an auditor, and produce audited accounts (including group accounts where relevant).
• General supervisory duties: Requires submission of returns and information to the Commission, regulates advertisements and market conduct, and governs changes of name and use of restricted names.
• Transfers, mergers and enforcement: Regulates transfers and mergers of insurance business, provides for segregated portfolio companies, and creates offences for false or misleading statements with associated penalties and compliance orders.

The Act applies broadly across the BVI insurance sector, covering both domestic and foreign-licensed insurers as well as intermediaries and support providers, with detailed requirements elaborated further in the Regulatory Code and regulations made under the Act.

Key obligations

• Licensed insurers must maintain a financially sound condition, minimum contributed capital and a prescribed solvency margin at all times
• Licensees must maintain proper records and prepare financial statements in accordance with the Act
• Relevant licensees must appoint an auditor and submit audited financial statements and reports to the Commission
• Life and health insurers must appoint a qualified actuary and obtain periodic actuarial investigations and reports
• Licensed insurers must maintain assets in the Virgin Islands as prescribed
• Insurers and intermediaries must obtain Commission authorisation before appointing or terminating directors and senior officers, opening branches, or acquiring/disposing of significant interests
• Insurance intermediaries and managers must appoint a designated representative unless exempted, and maintain professional indemnity and other required insurance
• Licensees must submit returns and report information to the Commission as required
• Licensees must not carry on unauthorised insurance business or deal with unlicensed insurers, and insurance intermediaries must not receive commission unless properly licensed

Applies to

licensed insurers (BVI insurers and foreign insurers), insurance managers, insurance intermediaries (insurance agents and insurance brokers), loss adjusters, auditors of licensees, actuaries appointed by licensees

Related documents

• This document replaces Insurance Act, 2008 (No. 1 of 2008)
• Insurance (Amendment) Act, 2023 amends this document
• Insurance (Amendment) Act, 2024 amends this document