Companies formed and registered with a view to carrying on insurance business in any part of the world other than Cyprus are treated as companies carrying on such business within the island. Their incorporation and operation is governed by the Insurance Companies Law, which is similar to the equivalent English law. It contains regulations relating to solvency margins, minimum subscription, financial reporting, investment of premiums and prohibition on loans to certain persons.
The incorporation of international captive insurance companies, which restrict their operations to insuring risk of the parent, holding or associated group of companies to which they belong, may be realized under more favourable conditions. IBCs maintaining a physical presence in Cyprus also include a number of agents and brokers as well as a number of firms which provide a wide range of services to insurance companies without themselves engaging in insurance business. As with all other Cypriot insurance companies, the regulatory authority for those operating internationally is the Superintendent of Insurance, Ministry of Finance.
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 from a local lawyer or accountant.
