Panama - Captive insurance · 2017-06-01 · Panama Captive insurance in Panama is subject to Law...
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Captive Insurance Times Domicile Guidebook 2017 www.captiveinsurancetimes.com Panama Captive insurance in Panama is subject to Law 60 of 1996, which regulates the creation, operation and administration of captive insurance companies (CICs). The law is flexible enough to accommodate myriad insurance and reinsurance activities, yet sufficiently stringent to allow the operation of sound financial ventures. The law applies to any legal entity engaged exclusively in the business of insuring or reinsuring particular or specific foreign risks, from an office physically located in Panama. This office must be properly identified and staffed by personnel qualified to administer its operations. The legal entity must have a licence granted by the Superintendence of Insurance and Reinsurance. The law distinguishes two types of insurable risks: • Long term: To insure or reinsure individual, collective or group life, including hospitalisation, pensions or life-long annuities • General risks: To insure or reinsure any risk no defined as a long-term risk An applicant interested in setting up a CIC in Panama may apply for either or both types of licences, but the applicant must limit its operations to the type of licence obtained. In Panama, risks of a local nature are not insurable. The law provides specific examples of local risks and creates a presumption of applicability to all risks, with the exception of: those related to individuals, real estate, or chattel located in Panama; automobiles, airplanes or vessels of national service; civil liability derived from damages occurring in Panama; and the shipment of goods whose destination is Panama. Insurance captives must maintain, free of any liens, the following paid in capital: • General terms: Not less than USD 150,000 • Long-term risks or both: Not less than USD 250,000 • Annual service fee: USD 2,000, paid directly to the Superintendence of Insurance and Reinsurance To obtain a licence to operate a CIC in Panama, applicants must follow a two-stage process. The first phase involves the registration of a legal vehicle (either a Panamanian subsidiary or a branch of the foreign corporation in the Public Registry of Panama). The second phase involves requesting an operation licence from the Superintendence of Insurance and Reinsurance. More information on captive insurance in Panama can be found at www.superseguros.gob.pa. Panama
Transcript of Panama - Captive insurance · 2017-06-01 · Panama Captive insurance in Panama is subject to Law...
Captive Insurance Times Domicile Guidebook 2017
www.captiveinsurancetimes.com
Panama
Captive insurance in Panama is subject to Law 60 of 1996, which regulates the creation, operation and administration of captive insurance companies (CICs).
The law is flexible enough to accommodate myriad insurance and reinsurance activities, yet sufficiently stringent to allow the operation of sound financial ventures.
The law applies to any legal entity engaged exclusively in the business of insuring or reinsuring particular or specific foreign risks, from an office physically located in Panama.
This office must be properly identified and staffed by personnel qualified to administer its operations. The legal entity must have a licence granted by the Superintendence of Insurance and Reinsurance.
The law distinguishes two types of insurable risks:
• Long term: To insure or reinsure individual, collective or group life, including hospitalisation, pensions or life-long annuities
• General risks: To insure or reinsure any risk no defined as a long-term risk
An applicant interested in setting up a CIC in Panama may apply for either or both types of licences, but the applicant must limit its operations to the type of licence obtained.
In Panama, risks of a local nature are not insurable. The law provides specific examples of local risks and creates a presumption of applicability to all risks, with the exception of: those related to individuals, real estate, or chattel located in Panama; automobiles, airplanes or vessels of national service; civil liability derived from damages occurring in Panama; and the shipment of goods whose destination is Panama.
Insurance captives must maintain, free of any liens, the following paid in capital:
• General terms: Not less than USD 150,000• Long-term risks or both: Not less than USD 250,000• Annual service fee: USD 2,000, paid directly to the Superintendence of Insurance and Reinsurance
To obtain a licence to operate a CIC in Panama, applicants must follow a two-stage process. The first phase involves the registration of a legal vehicle (either a Panamanian subsidiary or a branch of the foreign corporation in the Public Registry of Panama). The second phase involves requesting an operation licence from the Superintendence of Insurance and Reinsurance.
More information on captive insurance in Panama can be found at www.superseguros.gob.pa.
Panama
