Introduction
Gibraltar is within the European Union (EU) and has fully implemented the 2nd and 3rd EU directives on insurance. It is therefore possible for Gibraltar established insurance companies to cover risks in any EU Member State. The Insurance Companies Ordinance 1987 allows for the setting up of Gibraltar insurance companies, both third party insurers and captive insurers, and also the licensing of foreign insurance companies wishing to carry on business in Gibraltar. Insurance business is supervised by the Gibraltar Financial Services Commissioner (the Commissioner), supported by the Insurance Supervisor, to UK Standards.
Setting Up A Gibraltar Insurance Company
The cost of incorporation will depend on the amount of authorised share capital (stamp duty is 0.5%). Despite there being no minimum share capital included in the legislation, the Commissioner will expect a solvency margin of 18% of the gross written premium (reduced by up to 50% where there are Outwards
