Gibraltar Adopts Insurance Mediation And Reinsurance Legislation

by Jason Gorringe, for LawAndTax-News.com, London

24 January 2005

It emerged last week that the passporting of insurance and reinsurance mediation from Gibraltar throughout the EEA came into effect on January 15.

Passporting rights arise under the single market directives, and grant a person in the designated jurisdiction the right to establish a branch in another EEA state or to do business there on a cross-border basis, subject to the fulfillment of the conditions in the directive in question.

This is the fourth passporting badge awarded to Gibraltar, following insurance in 1997, banking in 1999, and investment services in 2003.

According to the Rock's financial services authorities, the passporting of insurance and reinsurance mediation was enabled by the passing of an amending ordinance, the Financial Services (Insurance Mediation) (Amendment) Ordinance 2004 in the House of Assembly on December 22, 2004. The Ordinance amended the Financial Services Ordinance 1989 in order to transpose into the law of Gibraltar Directive 2002/92/EC of the European Parliament and of the Council of December 9, 2002 on insurance mediation.

The Ordinance provides for the regulation of insurance and reinsurance mediation, including such activities as:

• Introducing, proposing or carrying out other work preparatory to the conclusion of contracts of insurance or reinsurance;
• Concluding contracts of insurance or reinsurance; and
• Assisting in the administration and performance of such contracts, in particular in the event of a claim.

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