REGULATION OF INSURANCE BUSINESS ON ARUBA
The Central Bank of Aruba is the supervisor
Supervision on conducting insurance business is regulated by the Central Bank of Aruba (Centrale Bank van Aruba) in the State Ordinance containing regulations on the supervision of the Insurance Business.
The Ordinance divides the insurance business into life insurance and general insurance. The general insurance business consists of categories of indemnity lines: (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. A license to engage in the general insurance business shall be granted per line of insurance.
Any person or entity wishing to conduct either life insurance or general insurance business in or from Aruba must first obtain a license from the Central Bank. Reference is made to the Banks admission policy for insurance companies. The Central Bank supervises insurers incorporated under the Aruban law and the branches and agencies in Aruba incorporated outside Aruba.
An insurer incorporated under the Aruban law must have the legal form of a public company with limited liability (naamloze vennoootschap), an Aruba Exempt Corporation (Aruba Vrijgestelde Vennootschap) or a mutual insurance association (onderlinge waarborgmaatschappij). At least one natural person must be responsible for the insurance companys day-to-day policy. The insurance company must have a Supervisory Board or a similar body, consisting of at least three natural persons. The persons responsible for the day-to-day policy in a licensed insurance company must have sufficient expertise and be sufficiently trustworthy in the Central Banks judgement.
Karel Frielink
Attorney (Lawyer) / Partner
