BVI's Captive Sector Continues To Grow

by Robert Lee, for LawAndTax-News.com, London

20 April 2007

Figures released by the BVI International Finance Centre for 2006 demonstrate continued growth in captives for the industry’s third largest offshore jurisdiction.

More than 400 captives are now licensed in the BVI, solidifying the Territory’s position as the third largest offshore centre for captive insurance business. A total of 57 new captive licenses were issued during the year – representing a growth index of 15% - with 22 insurance managers resident in the BVI.

Humphry Leue, Chief Operating Officer at the BVI International Finance Centre, comments: “The BVI has come a long way since we licensed the first captive insurer back in 1994. Almost 250 new captives have been formed just in the past 4 years and 2006 was another very good year. The BVI is certainly one of the premier captive insurance jurisdictions, particularly for small to medium sized business owners incorporating their captives, and we have developed a strong professional infrastructure capable of servicing these businesses.”

The BVI’s Segregated Portfolio Companies (SPCs) legislation is one factor thought to support this growth. In addition, the broader BVI Business Companies Act, launched in 2005, is said to have provided the insurance industry with a full range if corporate vehicles, including Special Purpose Vehicles (SPVs), intended to assist the capital markets with their growing involvement in global insurance and reinsurance industry.

Simon Owen, Chairman of the BVI Association of Insurance Managers, adds:

"The diversity of our legislation continues to be a key factor of our success. Both the public and private sectors have worked extremely hard to ensure that we have a balanced regulatory system in the BVI that enables the creation of new and innovative structures whilst ensuring that policyholders are afforded with an effective level of protection."

Established in 2002 as part of the Government’s commitment to support the financial services industry, the BVI IFC has played a pivotal role in the promotion and marketing of the BVI as a leading financial centre. Its aim is to give a voice to the BVIs financial sector. The IFC is committed to ensuring that the BVI retains the unique balance it has created in having a sound regulatory framework, an entrepreneurial business community and a government that is committed to developing innovative legislation

The launch of the Centre marked the final stage in the government’s plans to separate the marketing/promotional and regulatory/supervisory functions. Regulation is now the sole responsibility of the BVI Financial Services Commission, which was also established in 2002.

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