Insurance (Amendment) Act, 2023

Summary

This Act amends the BVI Insurance Act, Revised Edition 2020, to broaden and clarify the concepts of controlling interest and significant interest in a licensee, and to extend related provisions in sections 21 and 45 of the principal Act to cover controlling interest as well as significant interest.

• Controlling interest redefined: The definition of controlling interest in section 2(1) is replaced to cover ownership or interest giving a person influence over a licensee or its holding company, including holding more than 50% of voting rights, having a significant interest that confers considerable voting advantage, exerting influence without a significant interest, or giving instructions to directors/senior officers who are accustomed to acting on them.
• Significant interest redefined: The definition of significant interest in section 2(1) is replaced to mean a holding or interest (alone or with others) entitling a person to control 10% or more of voting rights, 10% or more of any distribution or surplus asset distribution, or to appoint or remove directors.
• Section 21 amended: Section 21(5) of the principal Act is amended to insert or controlling interest after the words a significant interest, extending that subsection's application to controlling interest holders.
• Section 45 amended: Section 45(5) of the principal Act is similarly amended to insert or controlling interest after a significant interest.

The Act does not commence automatically on passage or Gazette publication; it takes effect on a date the Minister appoints by Notice published in the Gazette.

Key obligations

• Persons or entities holding, or proposing to acquire, a controlling interest in a BVI insurance licensee (as newly defined) become subject to the same requirements under sections 21(5) and 45(5) of the Insurance Act that previously applied only to holders of a significant interest.
• Licensees and their holding companies should reassess who qualifies as holding a controlling interest or significant interest under the amended, broader definitions for compliance and disclosure purposes.

Applies to

insurance licensees, holding companies of licensees, persons holding or acquiring a significant interest or controlling interest in a licensee

Deadlines

• date to be appointed by the Minister by Notice in the Gazette: Commencement of the Insurance (Amendment) Act, 2023

Related documents

• This document amends Insurance Act (Revised 2020)