Insurance - Frequently Asked Questions

How is the insurance industry in Barbados regulated?
The insurance industry in Barbados is regulated by the Insurance Division of the Financial Services Commission.  As part of the regulation and supervision of the sector, the Commission
•    Licenses and registers all insurance companies and intermediaries
•    Registers and approves all insurance products
•    Inspects company records on an annual basis to ensure compliance with regulations
•    Analyse company’s financial records
•    Investigate complaints
•    Impose sanctions or other corrective measures where breaches are identified.

How do I become licensed to conduct insurance business in Barbados?
The requirements for licensing vary according to the category of insurance companies and intermediaries.  The requirements can be found on the section Licensing requirements and process.

What is exempt insurance business?
Exempt insurance business or “captive” insurance business is the business of insuring risks located outside Barbados in respect of which premiums originate outside Barbados, and includes the business of an underwriter, broker, agent, dealer or salesman in respect of that business.
What is the minimum capital requirement for an international business company?
The minimum capital requirement for an international business company is US$125,000

What are the reporting requirements for Exempt Insurance companies?
See Regulatory returns and Guidelines

What are the advantages of using Barbados as an offshore domicile?
Advantages of conducting international insurance business in Barbados
1.    Business convention expenses incurred by US corporations are deductible against taxes in the US.
2.    Under the Canada/Barbados Double Taxation Agreement, dividends paid, out of income earned from captive insurance business in Barbados to a Canadian company, are considered “exempt surplus”, and are not subject to Canadian taxes, providing the risks are non-Canadian.
3.    No restriction on insurance business being written
4.    Speed of incorporation and licensing.
5.    Minimum capitalization of US$125,000.
6.    Regulatory filings that comply with international accounting standards.
7.    Special Provision for incorporation of mutual insurance companies
8.    Exemptions from tax on income and all withholding taxes.
9.    Exemptions from taxes on profits or gains from investments
10.    Exemptions from property taxes
11.    Exemptions from controls on foreign ownership of property
12.    Economic and political stability