In conjunction with its position as a member of the European Union, Gibraltar has already enacted the First EU Insurance Directives as part of the Insurance Companies Ordinance, 1987. The Directives give EU insurers the right to establish themselves in any foreign Member State as long as they comply with various conditions. They set out a broad regulatory and administrative framework, enabling EU insurers to operate in other Member States without being subject to more onerous restrictions than their local competitors. The Directives also stipulate the minimum levels of solvency that must be maintained.
On 1 July 1996, further amendments were made to the Insurance Companies Ordinance, 1987 which implemented the Second and Third Insurance Directives together with a number of other EU directives. The principal purpose of the amendments was to provide the regulatory framework within which companies will no longer have to seek authorisation in each member state where they want to carry on business. The authorisation provided by the home state is valid across the entire EU, whether business is carried on through a branch, an agency, or through the provision of cross-border services. These amendments lay down the requirements for both insurers established in Gibraltar wishing to cover risks in a member state and insurers established in a member state wishing to cover risks situated in Gibraltar.
The information in this article was correct on January 1997.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances