INSURANCE BUSINESS IN ARUBA (I)
The Central Bank of Aruba is the regulator
The Central Bank of Aruba supervises insurers incorporated in Aruba and the branches and agencies in Aruba of insurers incorporated outside Aruba based on the State Ordinance on the Supervision of the Insurance Business (SOSIB).
The SOSIB, effective since 2001, stipulates that life and non-life insurance business must be carried out by separate legal entities. The Central Bank of Aruba shall decide whether an action or a combination of actions does or does not constitute as being engaged in the life insurance business or the general insurance business, and whether an action or a combination of actions does or does not constitute as being engaged in the insurance business from an establishment in Aruba.
Except for anti-money laundering regulations, there is no regulatory system in place with respect to insurance brokers. However, supervision of insurance brokers is included in the draft of the revised SOSIB.
Without a license from the Central Bank it is prohibited to approach any member of the public in or from Aruba regarding the direct or indirect engagement in the insurance business. If an insurer domiciled abroad intends to perform his activities in Aruba by means of a representative, it shall appoint a natural person or legal entity residing or domiciled, respectively, in Aruba (Section 1(1) State Decree Representative Insurance Companies).
Karel Frielink
Attorney (Lawyer) / Partner
(5 December 2011)
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