Insurance managers oversee the administrative requirements of running an insurance company or captive in The Bahamas. They manage underwriting, make sure that audits are completed, see that the company makes required annual reports, and ensure that the company is in compliance with the law. Under the External Insurance Act, 2009 and associated regulations, The Bahamas has established several requirements to become an insurance manager.
“Insurance manager” means a person that “provides or holds himself out as providing insurance management services”, including “accounting, administrative, brokerage, underwriting, and claims processing services in respect of external insurance business” to one or more persons. External Insurance Act, Section 2. Insurance managers must be companies incorporated in The Bahamas under Bahamian law. The Insurance Commission of The Bahamas (“ICB”) must approve the company name.
Insurance managers apply and register with the ICB, and they renew their registration each year. The ICB may reject the application of any proposed insurance manager for failure to meet the External Insurance Act requirements. A rejected applicant has the right to appeal the decision. External Insurance Act, Section 35(2).
Insurance managers must have a minimum of two directors of the company. Company owners, directors, and senior management must be fit and proper to administer insurance business. In particular, the ICB considers whether these people “have or have access to sufficient knowledge and practical experience of insurance business adequate to enable them to act in the capacity in which they have applied to be licensed,” and whether the company's net value of assets is adequate. External Insurance Act, Section 34(1).
The insurance manager must select a resident representative in The Bahamas to represent the insurer. The resident representative may be the insurance manager itself. A resident representative should have an understanding of the underlying insurer's policies, procedures, business plan, and compliance.
The External Insurance Act requires that insurance managers maintain professional indemnity insurance equal to at least the average annual fees for the past three years or $500,000. The insurance manager companies submit annual audited financial statements to the ICB no later than four months after the fiscal year end.
To find out more about insurance law, visit Gonsalves-Sabola Chambers online or call the office at +1 242 326 6400.