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Supervision - Captive Insurance Companies

Captive Insurance Companies

A captive insurance company is an insurance company that may only insure the risks of its owner(s) or participating companies. The State Decree on Captive Insurance Companies (AB 2002 no. 50) provides a distinct set of supervisory provisions only applicable to captive insurance companies. The provisions of the State Ordinance on the Supervision of the Insurance Business remain applicable to captive insurance companies, unless otherwise indicated. 

The supervision of captive insurance companies aims primarily at maintaining the integrity of the financial system and safeguarding the interests of the policyholders and other beneficiaries. Mainly via off‐site surveillance and periodic on‐site examinations, the CBA conducts ongoing oversight over the captive insurance companies.

  1. Admission/ market entry

    Captive insurance companies operating in or from Aruba need a license from the CBA before they can start their activities. Reference is made to the admission policy of the CBA for captive insurance companies.

  2. Law and regulations

    Captive insurance companies in the possession of a license from the CBA have to continuously comply with the supervisory laws and regulations. 

    Supervisory laws applicable to captive insurance companies:

    Regulations applicable to insurance companies:

    Captive life insurance companies also fall under the scope of the AML/CFT ordinance and the Financial Sanctions Regulations.

  3. Enforcement

    In cases where the CBA identifies a situation of noncompliance with the applicable supervisory laws and regulations, formal or informal (a normative conversation or a written warning) measures are considered. The decision whether to apply formal or informal measures depends, among other things, on the seriousness of the case. Please refer to the CBA’s Enforcement policy for more information.

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