All companies wishing to do business as an Insurance company must do so through an IBC and having a registered agent and a registered office.
The Act provides for three types of insurance licenses:
Class A – general insurance business only
Class B – long term insurance business
Class C – both general and long term insurance business
Companies seeking a Class A or a Class C license, may, with respect to its general insurance business be granted a: Sub class 1 license if the company is a Captive insurance company, or a Sub class 2 license in all other cases in respect of general insurance business.
A licensee must at all times have two directors (who must be natural persons), at least one of which must be a resident of St. Lucia.
In order to incorporate an IBC to partake in international insurance business, the person seeking to incorporate must first make a tentative or preliminary application to the Financial Services Regulatory Authority (FSRA) for approval to incorporate the IBC.
The capital requirement for Insurance companies under the Act ranges from $50,000 to $100,000. At least $50,000 must be deposited or invested in a manner prescribed by the FSRA.
Companies will be subject to regulation by the FSRA and will have to file annual audited statements.
Companies regulated under the Act will have to maintain total capital and surplus and liquidity adequate to its ongoing needs.
There are special provisions maintaining the confidentiality of the information submitted to the FSRA on application and protecting the confidentiality of the affairs of the licensee or the affairs of a customer of a licensee.
Insurance companies are IBC’s and therefore not subject to any taxes (unless they have elected to be subject to 1% tax) or stamp duties in St. Lucia.
The business nor the shares of an International Insurance Company shall be transferred without the approval of the FSRA.