Mauritius offers an attractive and stable environment for captive insurance companies.
Captive insurance entities have become a preferred vehicle for companies to manage their annual premium payments with sustained and continued growth over the past decade.
Captive Insurance Act 2015
The Captive Insurance Act was passed in 2015 with the aim of making Mauritius a captive domicile of choice and to introduce a new framework in line with international best practices which is equally competitive and will attract pure captive insurance corporations from around the world. Permissible classes of captive insurance business under the Captive Insurance Act are insurance or reinsurance pertaining to general insurance business, Alternative Risk Transfer policy contracts or any other class or type of insurance business as may be prescribed. At present, the Captive Insurance Act only caters for pure captive insurance business, i.e. the business of undertaking liability restricted exclusively to the risks of the parent and affiliated corporations.
Captive Insurance (Pure Captive Insurance Business) Rules 2016
The Financial Services Commission, Mauritius (FSC) issued the Captive Insurance (Pure Captive Insurance Business) Rules (‘Pure Captive Rules’) in 2016 with the aim to strengthen the framework for captive insurance business introduced by the Captive Insurance Act. The Pure Captive Rules are exclusively in respect of pure captive insurance business and lay down requirements regarding capital, solvency and reporting.
Third Party Captive Insurance Business
Following the Captive Insurance Act and the Pure Captive Rules, the FSC is currently working on Regulations to be issued by the Ministry followed by new Rules, to allow the licensing of Third Party Captive Insurance business in line with one of its objectives to study new avenues for the development of the financial services sector, to respond to new challenges and to take full advantage of new opportunities for achieving economic sustainability and job creation. The FSC issued the draft Captive Insurance (Captive Insurance Business) Rules for public consultation, and based on the feedbacks received, the draft Rules are in the process of finalisation along with the Regulations.