Insurance business in Gibraltar is regulated by the Insurance Companies Ordinance, 1987 and licensed and supervised by the Financial Services Ordinance, 1989. The Commissioner of Insurance is charged with the general administration of the Ordinance and its Regulations which provide a comprehensive framework for the licensing and ongoing supervision of insurance companies, including captives. In Gibraltar no distinction is drawn between a captive and any other category of insurance company, although the nature of their business is taken into account when considering their registration applications. Furthermore there are no regulatory restrictions on the type of business in which a captive may deal.
With certain exceptions, no insurance business can be undertaken in Gibraltar except by persons licensed under the Ordinance. An application for a licence should be addressed to the Commissioner through the insurance supervisor and must be accompanied by prescribed particulars. The Commissioner will only issue a licence if he is satisfied that the applicant will carry on insurance business with integrity, prudence and with the professional skills necessary for the range and scale of business undertaken.
Under the Ordinance, the Commissioner has the power to issue such directions in writing as he may consider necessary in order to protect the interests of the policy holder, appoint any person whom he considers suitably qualified to investigate the affairs of any person who carries on or is suspected of carrying an insurance business, and revoke a licence or revise its terms.
The information in this article was correct on January 1997.
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