The Mauritius International Financial Centre (IFC) has come to be recognised as a trusted, global financial services platform. Highly rated by the likes of the OECD and World Bank as a compliant jurisdiction that adheres to international norms and best practices, the Mauritius IFC has an innovative and robust regulatory regime.
This has helped it achieve global credibility, enhanced by a wide range of financial products suitable for all types of investors in the banking, global business, insurance, capital markets and other non-banking financial sectors.
Perhaps less well-known is how the Mauritius IFC offers an attractive platform for the provision of insurance/reinsurance brokerage services. This can be attributed to its modern regulatory framework, vast pool of actuarial and insurance professionals, along with a suite of cross border insurance services.
The business of an insurance broker
An insurance broker arranges products with insurers on behalf of prospective policyholders – or as a representative of a policyholder – while reinsurance brokers carry out reinsurance brokering for an insurer.
The procurement of insurance products requires good knowledge of a number of elements which typically include the:
- Risks to be covered
- Prospective policyholder’s needs
- Diverse investment and insurance types available
- Relevant characteristics of the products offered and contractual terms
Moreover, brokers must understand costs and returns as well as the insurance companies’ past performance and services. The acquisition and assessment of this information typically involve high search costs. As a result, insurance intermediaries such as brokers play a key role in reducing such costs, while acting as providers of high-quality information and advisory services.
What are the advantages of having an Insurance Broker licensed in Mauritius?
Mauritius is recognised as a financial centre of choice by a number of insurance brokers and is a member of the International Association of Insurance Supervisors (IAIS) and the SADC’s Committee of Insurance, Securities and Non-banking Financial Authorities (CISNA).
Mauritius is also acknowledged as being at the forefront of driving quality investments into Africa. As a global business platform, well-located for African markets, Mauritius has all the advantages of a traditional international financial services centre. The jurisdiction equally offers investors a diverse product base for planning and optimising the associated benefits.
Amongst others, Mauritius offers the following major advantages:
- A substantial network of double-taxation avoidance agreements that provide tax efficiency and investor protection via a number of Investment Promotion and Protection Agreements (PPAs)
- A Partial Exemption Regime (income tax exemption of 80%) provided that the substance requirements criteria are met
- Pool of experienced and qualified professionals
- Favourable time zone, ideally located between Europe and Asia
- Major international banks present
Mauritius also offers a definitive competitive advantage with respect to cost, while on the insurance side, broker licences are typically issued within a reasonable time by the regulator.
Requirements for a Global Business Company (GBC) to apply for an Insurance Broker Licence in Mauritius
For a Global Business Company (GBC) to apply for an insurance broker licence in Mauritius it must be managed and controlled from Mauritius, administered by a Management Company, and carry out its core income-generative activities in or from Mauritius. This would involve employing at least one qualified member of staff, either directly or indirectly, and having a minimum annual expenditure of USD 30,000.
To ensure that management and control is in Mauritius, the GBC must also:
- have at least 2 directors resident in Mauritius
- maintain its principal bank account in Mauritius;
- keep its accounting records at its registered office in Mauritius;
- prepare its statutory financial statements to be audited in Mauritius; and
- provide for meetings of directors to include at least 2 directors from Mauritius.
How can Arch Global assist you?
Arch Global Consult Ltd (Arch Global) is a management company licensed by the FSC in Mauritius, providing world-class and personalised services to clients looking to structure their businesses through Mauritius. Arch Global is a one-stop destination for Corporate, Trust, Funds and Foundation services. Get in touch to find out more.