Regulatory Alerts2018-01-01
Captive Insurance (Pure Captive Insurance Business) (Amendment) Rules 2018
The Financial Services Commission issued the Captive Insurance (Pure Captive Insurance Business) (Amendment) Rules 2018 to amend the principal 2016 rules by introducing new substance requirements for captive insurers. Under the newly inserted Rule 23A, captive insurers must maintain an adequate number of suitably qualified personnel and incur minimum expenditure proportionate to their core income-generating activities at all times. These amendment rules came into operation on 1 October 2018, directly modifying the regulatory framework governing pure captive insurance business.
THE CAPTIVE INSURANCE ACT FSC Rules made by the Commission under section 18 of the Captive Insurance Act and section 93 of the Financial Services Act
These rules may be cited as the Captive Insurance (Pure Captive Insurance Business) (Amendment) Rules 2018.
1. In these rules –
“principal rules” means Captive Insurance (Pure Captive Insurance Business) Rules 2016.
2. The principal rules are amended by inserting, after rule 23, the following new rule –
23A. Substance requirements
A captive insurer shall at all times for the conduct of its core income generating activities –
(a) employ an adequate number of suitably qualified people either through direct employment or indirectly through an insurance manager hired to manage its captive insurance business; and
(b) have a minimum expenditure proportionate to its level of activities.
3. These rules shall come into operation on 1 October 2018.
Made by the Financial Services Commission on 27 September 2018.