INSURANCE INDUSTRY - LICENSING OF INSURANCE AGENTS & INSURANCE BROKERS
In Cyprus the regulator of the insurance industry is the Cyprus Registrar of Insurers. Similarly to the Cyprus Registrars of companies the Cyprus registrar of insurers is responsible for the licensing of the physical and legal bodies engaging in life and non life insurance products.
Cyprus has two main categories of insurers: an insurance agent and an insurance broker each with different criteria performing similar tasks.
Important Details
Management of the insurance company must be able to demonstrate to the local regulator that it has the skills and experience to manage the insurance company. Hence in the application pack the composition of the board and the rest of the key stakeholders of the organisational structure must be qualified individuals, with the necessary international and local qualifications as required by the Cyprus Registrar of insurances with the necessary experience in the field as supported by their CVs.
Source of Wealth by the UBO
A UBO in licensing, accounting and legal terms is the Ultimate Beneficial Owner and is the final owner of the structure or the company. Not the paper owner but rather the real owner the key person or persons who exercise control and influence over a single company or a group of companies.
The regulators always want to know more about the UBO of the entity which will be licensed. The Cyprus Registrar of Insurers will go as far as interviewing the actual person who is behind the insurance company application
Source of funds literally means in simple terms, how did you - the investor / UBO collected the money to make this investment, to pay for the insurance company license, to pay for the application, for the requested capital. How did you accumulate the necessary capital required to support this application.
From your businesses, from your salary, maybe it was inherited? The evidence will have to be gathered authenticated and presented to the regulator. If it is weak or non commercially sensible, then your application will be rejected.
We can not stress enough the importance of sourcing your application to the professional fully regulated firm like ours since applications are approved after a considerable amount of time and if rejected then the entire licensing operation will stall for a year on average.
Applying for an insurance brokers license is a relatively straight forward application and an application the local Cyprus Registrar of Insurers feels very comfortable with as there are plenty of local brokers licensed in the republic.
Applying for an insurance agents license is similar to the insurance brokers license but without a capital requirement and less credential requirements for the applicants.
CYAUSE Audit Services has extensive experience in the insurance industry has helped tens of insurance brokers and agents register and get licensed by the local regulator. Feel free to download our brochure and to contact us directly at enquiries@cyprusaccountants.com.cy and we will be more than happy to assist you.