Mauritius insurance companies

Mauritius Insurance Companies

The insurance industry in Mauritius is well developed and makes extensive use of reinsurance facilities. Insurance regulation and supervision is entrusted to the Financial Services Commission (FSC).

The Financial Services Development Regulations 2001 lays out the framework to facilitate the establishment of captive insurance business. Applicants for captive insurance licences are companies with a Category 1 Global Business Licence duly licensed by the Financial Services Commission. Captive Managers have been licensed to provide specialised services in the area of captive insurance.

Both pure captives and captives insuring second party and third party risk may be licensed. In the case of third party business the captive should demonstrate access to the necessary underwriting and analytical skills, financial soundness and a good track record. Full details of all programmes to be underwritten must be submitted for approval to the Financial Services Commission. Rent-a-captive and cell captives are also permitted.

A captive insurance company must obtain a licence to conduct captive business. The Captive Insurance Company may also have to appoint a licensed Management Company in Mauritius and a Principal Representative who will be accountable to the Commission.

Types of captives

Captive General Insurance Business

  • Minimum Paid-Up Capital: US$ 100,000
  • Margin of Solvency: Surplus of assets over liabilities of US$100,000 or 15% of net premium income, whichever is higher.
  • Liquidity Ratio: The value of the captive's admitted assets must not be less than 75% of the amount of its admitted liabilities.

Captive Long Term Insurance Business

  • Minimum Paid-Up Capital: US$ 250,000
  • Margin of Solvency: Liabilities not to exceed amount of long term insurance fund.

Captive General and Long Term Insurance Business

  • Minimum Paid-Up Capital: US$ 350,000

Reinsurance/Filing

Captive insurance companies are required to be reinsured in excess of reasonable and prudent retention levels unless the Commission is satisfied that the captive has access to sufficient security without the need for reinsurance.

The Commission requires the annual filing of:

  • Audited financial statements.
  • Certificate of margin of solvency.
  • Certificate of liquidity ratio.
  • Actuarial valuation of adequacy of premiums and loss reserves for long term business.

Declaration of Principal Representative as to accuracy of accounts.

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