There are currently two pieces of legislation that regulate the operations of captive insurance companies in Barbados, these are the Exempt Insurance Act, Cap. 308A and the Insurance Act, Cap. 310 (IA). Effective 1 January 2019, the Exempt Insurance Act will be repealed and the Insurance Act will be amended to provide for (among other things) three (3) classes of licences under which all insurance entities will be classified and regulated.
This category will include insurance companies that restrict the business they can underwrite to related party insurance business. (The Financial Services Commission (FSC) will issue guidance as to the criteria for being classified as carrying on related party business). (Applicable tax rate – 0%)
This category will include insurance companies that underwrite or can underwrite third party business. (Applicable tax rate 2%)
This category will include brokers, other intermediaries, insurance management companies, insurance holding companies, and the like. (Applicable tax rate – 2%)
All classes will pay the relevant licence fee.