We can also establish insurance companies for our clients. Please see the following information in this regard:
Separate licences must be obtained for life and non-life insurance business, and companies may not engage in non-insurance business.
Licensing requirements for domestic companies
Applications for a licence to carry on insurance business must be submitted on the relevant form, accompanied by:
- the fee payable (approximately €5170 for general insurance; approximately €8620 for life insurance;
- memorandum and articles of association certified by the Registrar of Companies;
- initial balance sheet in the appropriate form, with confirmation by the company’s auditors of availability of the minimum guarantee fund and the share capital.
- a three-year business plan detailing the nature of the risks, the guiding principles concerning reinsurance, the assets making up the minimum guarantee fund, details of set-up costs and projected profit and loss accounts and balance sheets, in order to demonstrate that the company has adequate resources;
- a written declaration of the date chosen as the accounting reference date;
- details of all directors, including academic qualifications experience, together with certificates in respect of each individual that he or she has no clean criminal record and has never been declared bankrupt;
- similar details and certificates in respect of the internal actuary if the company is carrying on life business or sickness insurance;
- details of all reinsurance, accompanied by confirmation by the reinsurers;
- details of all shareholders, both direct and indirect, on the appropriate form;
- written confirmation of intention to join the Motor Insurers’ Fund, if the company is to provide motor insurance.
The Superintendent of Insurance is obliged to make a decision on the application within six months of receiving it. A licence will only be granted if all of the conditions set out in the Insurance Law are satisfied. For a Cyprus insurer, these are as follows:
- the application must comply with the requirements of the Insurance Law and include all the prescribed information;
- the applicant company must have the minimum issued share capital (CYP400,000 for general insurance, CYP600,000 for life insurance and CYP1,000,000 for reinsurance) and a minimum guarantee fund of €3,000,000 plus an inflation adjustment;
- the business plan must show that the company is adequately resourced, both in terms of financial and human resources;
- the Superintendent of Insurance must be satisfied that the company has adequate reinsurance provision;
- the Superintendent of Insurance must be satisfied that the major shareholders are not inappropriate;
- the company must have its central administration and registered office in Cyprus;
- the company must have an adequate management structure and managers of the company must be fit and proper persons under article 59 of the Insurance Law. All executive directors and managers must be resident in Cyprus, unless the Superintendent of Insurance grants an exemption;
- the company’s name must comply with the Insurance Law and in particular may not be similar to the name of an existing company so as to risk causing confusion;
- the company must have an appropriate actuary for the class of business it intends to undertake;
- if it intends to undertake motor insurance business, the company must have made arrangements to join the Motor Insurers’ Fund and to appoint a representative for settlement of claims in every EU member state.