Exemptions under the Insurance (Restriction of Insurers) Regulations 2012 Guidelines

Exemptions under the Insurance (Restriction of Insurers) Regulations, 2012 Guidelines FINANCIAL SERVICES AUTHORITY Bois De Rose Avenue P.O. Box 991 Victoria Mahé Seychelles Tel: +248 4380800 Fax: +248 4380888 Website: www.fsaseychelles.sc Email: enquiries@fsaseychelles.sc Version: 15th July, 2024

Page 2 of 7 Table of Contents

1. INTRODUCTION....................................................................................................................................3
2. SCOPE ...................................................................................................................................................3
3. PURPOSE ..............................................................................................................................................4
4. APPLICABILITY ......................................................................................................................................4
5. APPLICATION PROCESS.........................................................................................................................5
6. SERVICE STANDARDS............................................................................................................................6
7. CONDITIONS FOR APPROVAL ...............................................................................................................6
8. NOTIFICATION TO THE AUTHORITY......................................................................................................7

Page 3 of 7

1. INTRODUCTION 1.1. The Financial Services Authority (“FSA/Authority”) is issuing the Insurance (Restriction of Insurers) Regulations, 2012 (“Regulation”) guidelines in conjunction with the Insurance Act, 2008 (“the Act”) to provide guidance and assistance in matters relating to the exemptions within regulation 4 (c). 1.2. The Insurance (Restriction of Insurers) Regulations, 2012 stipulates that a person shall not enter into an insurance contract with an insurer, other than an insurer licensed in Seychelles to cover risks relating to assets situated in Seychelles unless an exemption has been granted by the Authority where the circumstances and the nature of the relevant risk cannot be insured with an insurer licensed in Seychelles. 1.3. These guidelines are not intended to be comprehensive nor replace or override any legislative provisions. Therefore, insurers and other applicants are advised to read these guidelines in conjunction with the Insurance Act, 2008. 1.4. The guidelines will assist the Authority in evaluating the insurers and other applicants (as may be applicable) (“applicants”) intending to apply for exemptions within the Regulations. The guidelines will be of guidance to the Authority in evaluating and determining whether the application for exemptions should be granted. 1.5. The process outlined throughout this guideline has been adapted to best fit the Seychelles insurance regime. 1.6. Enquiries relating to the exemptions under the above-mentioned Regulation should be forwarded to the Authority: By Post: Director of Insurance, Gambling and Pension Supervision Section Financial Services Authority P.O. Box 991 Bois de Rose Avenue Victoria Mahé Seychelles By e-mail: exemptions@fsaseychelles.sc Telephone: +248 4 380 800 Fax: +248 4 380 888
2. SCOPE 2.1 Section 4 (1) (d) & (i) of the Financial Services Authority Act, 2013 (“FSA Act”) permits the Authority to receive, review and determine applications and to develop appropriate regulatory and supervisory mechanisms for the efficient and effective administration of the Authority.

Page 4 of 7 2.2 As a result, to ensure consistency and accountability in the standards of applications, these guidelines highlight and establish the criteria required to be approved by the Authority for the Regulation. 2.3 These guidelines aim to provide clarity and the raison-d’être for insurers and other applicants to seek the exemption. The FSA takes into account that such practice may cause certain disruption in the business practice, specifically if the Authority determination is crucial for the asset. 2.4 In light of the above and to expedite the process for Insurers and other applicants are advised to observe these guidelines when submitting an application for exemption under regulation (4) (c) of the Regulation. 2.5 The FSA acknowledges the significant differences that exist in the organizational and legal structures of the insurers and other applicants and the nature and scope of the business activities conducted. As a result, the guidelines provided in this document serves as the minimum standards expected to be followed for submission of the exemption application. 3. PURPOSE 3.1 These guidelines are applicable whereby an exemption is required to be sought to the FSA, to allow an insurance contract with an insurer, other than an insurer licensed within the Seychelles jurisdiction. 3.2 This covers risks relating to assets situated in Seychelles as per the Regulation, specifically regulation (4) (c). 3.3 Therefore, the Authority will need to be satisfied that the circumstances and nature of the relevant risk cannot be insured with an FSA licensed insurer in Seychelles. 3.4 The exemption approval will not be a perpetual approval. Thus, if the applicant is granted the exemption, the following year, a new application form along with the insurance policy renewal notice or debit note or credit note, will need to be submitted to the Authority for a new determination.1 4. APPLICABILITY 4.1 The exemption is applicable for individuals/ entities who intends to enter into an insurance contract with an insurer, other than an insurer licensed in Seychelles to cover risks relating to assets situated in Seychelles. 1 The exemption renewal will not be automatic. The applicant will have to undergo the normal procedure and submit a new Exemption Application Form, to receive a determination from the Authority for the exemption.

Page 5 of 7 4.2 Prior to submitting the Exemption Application Form, the applicant should seek the insurance cover(s) from all FSA licensed domestic insurance company/companies for the particular asset to satisfy the Authority that the particular risk cannot be covered by a local insurer. 4.3 The written letter from all FSA licensed domestic insurer(s) must be submitted along with the exemption request which states that the domestic insurer is unable to insure the asset in Seychelles. 4.4 Determination of the exemptions will be considered solely in instances where circumstances and nature of the risks to be covered cannot be insured by an insurer licensed in Seychelles. 4.5 All relevant information and documents (if applicable) should be completed and submitted by the applicant as required in the Exemption Application Form. 4.6 Consequently, as per Section 43 of the FSA Act, the application shall be rejected, if the insurer or other applicants provides information to the Authority which he or she knows to be false or misleading in any material particular or recklessly provides information which is false or misleading with the intent to deceive the Authority when applying for the exemption. 4.7 Each application for exemption will be considered on its own merits (“case-by-case basis”). 4.8 The Authority is not bound nor subjected to be bound by the previous decisions made in favor of any insurers or other applicant in any previous or similar application. Applications for exemptions submitted by insurers who have violated or are in violation of any provisions of the Act or the regulations or directions will be rejected. 5. APPLICATION PROCESS 5.1 An application for exemption must be made to the Authority as per Regulation 4 (c) of the Insurance (Restriction of Insurers) Regulations, 2012, which requires the Authority’s approval to engage in such service. 5.2 In the case of a renewal of the insurance policy, the application should be submitted to the Authority at least one month before the renewal due date of the policy. 5.3 An application submitted to the Authority for the exemption must comprise of the following documents: (a) A completed Application Form (b) A copy of the formal quote or response from all domestic insurers stating that the nature of the relevant risks cannot be insured (either partly or wholly) by them. (c) Renewal Certificate2 2 Should contain name of the insured; name of the asset(s) located in Seychelles; sum insured; period of cover; premium; type of insurance cover; territorial limits; and details of insurer/reinsurer.

Page 6 of 7 (d) Cover Note / Debit Note3 (e) Policy Renewal Notice (f) Policy Schedule (g) Quotation of Insurance Cover (h) Any other relevant documentation that the FSA may deem necessary to undertake the application assessment 5.4 During the processing of the application, the Authority may request for additional information or supporting documents for the purpose of determining the application. 5.5 All applications seeking the approval of the Authority must be addressed and either be hand delivered or emailed to: The Chief Executive Officer Financial Services Authority P.O BOX 991 Bois De Rose Avenue Victoria Mahé Seychelles Attn: Insurance, Gambling and Pension Supervision Section 5.6 All application forms and other documents are available from the Authority’s website (www.fsaseychelles.sc). 6. SERVICE STANDARDS 6.1 The Authority’s service standards for processing and determining the application is upon the receipt of the duly completed application. 6.2 Importantly, the service standard will only be achievable if all the requisite information and documentation are submitted at the time of the application is lodged. 6.3 The FSA will not be responsible for delays arising from the submission of incomplete applications. 6.4 This service standard is not exhaustive or binding on the Authority. The approvalregime requires the Authority to exercise discretion and will depend on the applicant’s particular circumstances. 7. CONDITIONS FOR APPROVAL 7.1 Approval granted for the exemptions under the Regulations are only those that are contained within the approval letter and are limited to only such business as stated. 3 Should contain name of the insured; name of the asset(s) located in Seychelles; sum insured; period of cover; premium; type of insurance cover; territorial limits; and details of insurer/reinsurer.

Page 7 of 7 7.2 Applicants must comply with the approval condition as stipulated in the approval letter. 7.3 The Authority may impose such conditions and restrictions to the scope of business as it deems necessary. 8. NOTIFICATION TO THE AUTHORITY The Authority must be notified in writing within seven days if and/or whenever there is any material change which may have occurred whether before or after the issuance of the exemption approval. This may include but not limited to the information or documents submitted in connection with the application.