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Captive
Insurance Companies
Insurance companies in Vanuatu are registered under the Insurance Act and
may be registered as Local, External or “Exempted” Insurers.
Although Exempted Insurers are precluded from insuring risks within Vanuatu
and from soliciting business within or outside Vanuatu, there are many uses
and advantages for the Exempt Insurer. The Act does provide for discretion
for the Insurance Commissioner in its application, generally operations can
be carried out where a licenced insurance broker is utilised in the
jurisdiction where the risk originates.
Exempted companies must file Annual Returns, hold Annual General Meetings
and have a Resident Director. Trustees International Limited can assist you
with meeting all these requirements.
No papers
filed for an Exempted Insurance Company are accessible to the public.
The Exempt Insurer is designed primarily to encourage “captive insurance”. Captive insurance companies are generally owned, or associated with, the
companies they are insuring and they underwrite risks on a restrictive
basis.
Captives may be used to underwrite 100% of a risk. Alternatively, the
captive may reinsure, partially or wholly, through conventional
underwriters.
Why is Captive Insurance so attractive? Captive Insurance allows companies
to self-insure when excesses and premiums become prohibitive in normal
channels and in instances where there is a low likelihood of claims on
certain risks. Captive Insurance policies can be more tailored to the needs
of the insured party and are cheaper because broker and administration costs
are eliminated.
There are also tax benefits arising from the deductibility of insurance
premiums and there is an absence of tax on premium income received by the
captive insurance company incorporated in Vanuatu.
There are certain guidelines as to who can obtain an Insurance Licence.
Trustees International Limited has many years experience dealing with
Vanuatu’s Financial Services Commission and can assist you to sort through
all the requirements. For further information, contact us
today.
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