Why The Turks And Caicos Islands For Your Offshore Reinsurance Vehicle? – Insurance – Turks and Caicos Islands – Mondaq News Alerts

09 November 2021

Griffiths & Partners

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The Turks and Caicos Islands ("TCI")is a slice of heaven surrounded by beautiful turquoise waters andmiles of sandy white beaches. It is made up of eight populatedislands and over forty cays, and our moto is 'beautiful bynature'. But beyond the stunning vistas and sunny climes, TCIoffers several concrete advantages to set up reinsurance vehiclesand business.

Reinsurance is the practice through which insurers transfer aportion of their risk portfolio to other insurers. In return foragreeing to take on some of the original insurer's liabilities,the reinsurer (being the party that agrees to share the insuranceliability) generally receives a portion of the insurance premiumfrom the ceding party (the original insurer).

Reinsurance is a mechanism through which ceding parties caneffectively share some of their own insurance liabilities withanother insurance company, while still ensuring it can meet all itslegal commitments with regards to pay outs of its policyholdersshould they make an insurance claim.

Reinsurance allows ceding parties to retain liquidity in theevent they must make a significant pay out to one or multipleclaimants. It is particularly useful for insurers who providesignificant

insurance coverage to individual policy holders, or insurers whowould be on the line to cover large pay outs for multiple (usuallyseveral hundred or thousands) of claimants in the event ofsomething like a natural disaster.

The TCI insurance market includes insurers and reinsurers ofdomestic and non-domestic risk. The TCI is a global leader in theproducer-owned reinsurance company("PORC") insurance industry. However,TCI is also home to some captive insurance businesses as well.

The TCI tax-neutral regime is a globally responsible tax modelthat is simple and transparent. It efficiently supports the globalflow of investment capital and financing without posing taxableimpact to other countries' tax bases. Over 6,000 activereinsurance companies are registered in TCI to date, andapproximately 70 captives are licensed in TCI.

There are several advantages of setting up a reinsurance vehiclein TCI:

If you are interested in learning more about setting up areinsurance vehicle in TCI, or if you would like to learn moreabout what we do, please get in touch. We'd be delighted toshare more information about our services and how we can help.

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

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Why The Turks And Caicos Islands For Your Offshore Reinsurance Vehicle? - Insurance - Turks and Caicos Islands - Mondaq News Alerts