INSURANCE BUSINESS IN THE DUTCH CARIBBEAN (I)
A license is required
The insurance business in the Netherlands Antilles is regulated by the National Ordinance on the Supervision of the Insurance Business 1990 (Landsverordening toezicht verzekeringswezen, the “NOSI”).
The NOSI divides the insurance business into life insurance and indemnity insurance products. Indemnity insurance products are in turn divided into a number of categories: (i) accident and health insurance; (ii) motor vehicle insurance; (iii) maritime, transport and aviation insurance; (iv) fire insurance and other property insurance; and (v) other indemnity insurance.
Any person or entity wishing to conduct either life insurance or indemnity insurance business in or from the Netherlands Antilles must first obtain a license from the Central Bank. The NOSI does not allow insurance business other than life insurance or indemnity insurance to be carried out, but does allow reinsurance, for which no license is required.
The NOSI distinguishes between foreign and Netherlands Antilles insurance companies. Licensed Netherlands Antilles insurance companies must have the legal form of a mutual insurance association (onderlinge waarborgmaatschappij) or a public or private company with limited liability (naamloze of besloten vennootschap). At least two people must be responsible for the insurance company’s day-to-day policy. These will usually be the members of the Management Board. In addition, public or private companies must have at least three Supervisory Board members. In exceptional circumstances the Central Bank may grant exemptions from this requirement, for instance, if an insurance company is a direct or indirect subsidiary of a company with a Supervisory Board.
Those persons responsible for the day-to-day policy in a licensed insurance company must have sufficient expertise and be considered sufficiently trustworthy by the Central Bank. The Central Bank assesses their expertise and trustworthiness when the application for a license is processed.
Karel Frielink
Attorney (Lawyer) / Partner
