Insurance and Reinsurance Intermediary in Gibraltar
Insurance and Reinsurance Mediation encompasses activities such as advising on, proposing, or preparing for insurance contracts, including their administration and performance. Insurance intermediaries in Gibraltar act as brokers or agents representing consumers in insurance transactions. There are two types of regulated business activities that can be applied for:
General/Non-Life Business
Applicants are required to submit an application form along with additional documentation containing all relevant details. An Insurance or Reinsurance Intermediary must maintain initial and ongoing capital of:
4% of the sum of annual premiums received or projected at the time of application, whichever is greater.
Additionally, the GFSC expects firms to maintain financial resources equivalent to at least 3 months' worth of operating expenses (or as projected at the time of application), subject to the above requirements.
The Act prescribes minimum requirements concerning premises, capital, solvency, management, staff, and resources that must be met to obtain a license. Insurance and Reinsurance Intermediaries are obligated to maintain the following on a permanent basis:
Professional Indemnity Insurance covering the entire territory of the Union, with coverage against liability arising from professional negligence, set at least at €1,300,380 (or its sterling equivalent) per claim and €1,924,560 (or its sterling equivalent) annually for all claims combined.
Ensuring that funds paid by policyholders to the Intermediary are treated as having been paid to the Insurance Company, while funds paid by the Insurance Company to the Intermediary are not considered paid to the policyholder until received by them.
Ensuring that policyholders' funds are only transferred via strictly segregated client accounts, which cannot be used to repay other creditors in the event of bankruptcy.
Implementing adequate mechanisms for receiving and handling complaints.
Life Insurance and Life Reinsurance Intermediaries must adhere to the GFSC's Anti-money laundering Guidance Notes.
For further information, please contact Neptune Fiduciaries at info@neptunecorporate.com or sales@neptunecorporate.com.
