Domestic Insurance FAQs

What are the Licensing requirements for Domestic insurance companies and intermediaries?

Pursuant to Section 4 of the Insurance Ordinance 1990, persons wishing to carry on insurance business in or from within the TCI must first make an application to the Commission using the prescribed form accompanied by the prescribed fee.

Insurers and Intermediaries are required to provide key information to the Commission. The prescribed forms can be found in the Insurance Forms section.

How do I file a complaint against an insurer?

Step 1: Make your complaint to the company

An attempt at resolving the complaint should be first made with the Insurer. It is advisable that a written complaint be submitted to the Insurer addressed to the official designated by the Company to address such complaints.

It is advisable that you maintain a record of communication sent to Insurer pertaining to your complaint.

Step 2: Obtain a written position on the complaint

If you are unable to resolve your complaint with the Insurer, kindly request from the Insurer their written position on the issue. It is advisable that you maintain a record of communication received from the Insurer pertaining to the complaint.

Step 3: Write to the FSC

  1. If your complaint is not resolved, submit a written complaint to the Commission at :-
    TURKS & CAICOS ISLANDS FINANCIAL SERVICES COMMISSION
    P. O. Box 173 P. O. Box 140
    Harry E. Francis Building Caribbean Place
    Pond Street Leeward Highway
    Grand Turk Providenciales
    Turks & Caicos Islands Turks & Caicos Islands
    Telephone: (649) 946 - 2791/2550 Telephone: (649) 941 - 5399
    Facsimile: (649) 946 - 2821 / 1791 Facsimile: (649) 941 - 3549
    Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
    Opening hours: Monday - Thursday: 8:30am - 4:30 pm; Friday: 8:30 am - 4:00 pm
    (The Commission observes all Public and Government holidays)
  2. Kindly provide the Commission with a summary of your complaint, giving a clear description of the issue.
  3. Also; provide the Commission with a copy of all documents relating to your complaint (i.e. letters, emails, contracts, bills, invoices etc.). Please note that documents sent to the Commission will not be returned.

Step 4: The FSC will review and investigate your written complaint

Upon receipt of your complaint, the Commission will contact you regarding an appointment for you to come in and speak with a representative of the Insurance division. Kindly note that you may be required by the Commission to provide further details of your complaint orally and/or in writing.

The Commission will investigate all complaints received, and will provide you with a written status update on the matter. However, although the Commission will investigate breaches of the relevant legislation, the Commission cannot act on your behalf should the complaint require court intervention. Once our investigation has been concluded, the Commission will provide you with a written response on the proposed remedy for your complaint, or advise if this is a matter that you should take to an attorney.

What is Special Dispensation and how does it work?

Special Dispensation is an approval granted to licenced insurance brokers by the FSC in specific circumstances, which allows one to take out a policy or contract of domestic business with one or more unlicenced insurers.

Special Dispensation is granted in cases where the insurance cover being sought is not available locally, where the risks are too large to be covered by local market insurers or where no insurer is willing to accept the business. The following conditions must be met for Special Dispensation to be granted:

  1. The insurer has not been refused a licence under the Ordinance;
  2. The insurer must be of sound reputation;
  3. The proposed volume of business to be placed is inadequate to support the payment of fees of an insurer's licence or that some good and sufficient reason exists;
  4. The need for cover is self-evident (in terms of additional capacity, or policy coverage or otherwise).

The Special Dispensation is usually granted for a period of one year or a blanket approval can be granted without the need to seek approval on a case by case basis for specific classes of business.

What are the filing requirements of insurance licencees?

Licenced Insurers

Licenced Insurers are required to submit the following:

  1. Quarterly Returns

Guidelines issued pursuant to Section 43 of the Financial Services Commission Ordinance (“FSCO”) requires licenced domestic insurance companies to file Insurance Supervisory Returns to the Commission within one month after the end of each calendar quarter. The Insurance Supervisory Returns are to be prepared in accordance with the explanatory notes contained in the Guidelines for Insurance Supervisory Returns, and using the template provided by the Commission.

These returns are unaudited, completed for domestic (TCI) insurance business only, and are described as follows:

  1. Cover Page: enter the Company Name, the reporting period and the type of return being submitted.
  2. The Business Revenue Account (BRA) Sheet: information entered on this page will be entered automatically in their respective cell on the Income Statement.
  3. Income Statement
  4. Statement of Retained Earnings
  5. Liabilities, Capital and Reserves
  6. Assets
  7. Section 6(3) Assessment
  8. Solvency Assessment

Domestic insurance companies are required to make separate filings on their local operations and on their worldwide operations while external insurance companies are required to provide information on their operations in the Turks & Caicos Islands only.

Insurers are also advised to include Notes to their Insurance Supervisory Returns disclosing the type of business written and any major financial changes for the quarter.

         2.  Annual Returns

Section 10 of the Insurance Ordinance, Regulation 14 of the Insurance Regulations, and Guidelines issued pursuant to Section 43 of the FSCO require every licenced Insurer to submit within three (3) months of the end of its financial year Annual Returns which comprise the following:

  1. Consolidated Audited Financial Statements: This is the Audited Financial Statements which includes domestic (TCI) and non-domestic insurance business.
  2. Audited Financial Statements for domestic TCI business only.  
  3. A copy of the Auditors’ Management Letter: This should also include the company’s response to the issues raised by the external auditor.
  4. Audited General Revenue Account (by lines of business) for domestic TCI business only.
  5. Insurance Supervisory Returns – Annual Returns based on the figures reported in the Audited Financial Statements for TCI business only.
  6. Form AS 7/04: CEO Annual Certificate.
  7. Form ASS 2/99: Independent Auditor’s Assessment as to Solvency for both domestic (TCI) business and consolidated if applicable.
  8. Form SAS 2/99: Solvency Assessment Schedule for both domestic (TCI) business and consolidated if applicable. Insurers are required to complete the Applicable Schedule for general only, long term only or composite business respectively.
  9. ASBRC Form 2/99: Statutory Books and Records.
  10. Direct Confirmation from the financial institution holding the restricted deposit of the amount of the deposit as at the financial year end, and, that the funds are held to the order of the Commission.
  11. Summary of the current reinsurance arrangements for the classes of business underwritten in respect of domestic (TCI) business.
  12. Copies of all current Reinsurance Treaties in respect of domestic (TCI) business.
  13. Annual Compliance Report Form: To be completed in respect of domestic (TCI) business only.
  14. Where an insurer has a branch or a subsidiary in the Turks and Caicos Island, written confirmation that it accepts responsibility for all contracts issued, all acts, omission, liabilities of such branch or subsidiary.
  15. In accordance with Section 6(9) of the Insurance Ordinance Insurance companies carrying out long term insurance are required to prepare and submit, at least once in every three years, an Actuarial Valuation of its assets and liabilities certified by its actuary.

NB: In respect of (7) and (8) above, a solvency assessment is not required if the business is an Ordinary (TCI) Limited Company and does not carry out business in the Turks and Caicos Islands

Brokers

Section 11(2) of the Insurance Ordinance and Guidelines issued pursuant to Section 43 of the FSCO require every licenced Insurance Broker to submit to the Commission within three (3) months of the end of their financial year Annual Returns which comprise the following:

  1. Audited Financial Statements
  2. Form IBKR/1: Broker Annual Certificate
  3. Copy of current Professional Indemnity Insurance
  4. Schedule SPD/1/98: Special Dispensation Declaration Form - Brokers are required to provide a list of all the placements made with unlicensed (TCI) insurers during the year.
  5. Annual Compliance Report Form

Agents

Section 11(1) of the Insurance Ordinance and Guidelines issued pursuant to Section 43 of the FSCO require every licenced Insurance Agent to submit to the Commission within three (3) months of the end each calendar year Annual Returns which comprise the following:

  1. Form IA/1: Agent Annual Certificate
  2. Evidence of the existence of power of attorney, agency agreement or guarantee or professional indemnity insurance.
  3. Annual Compliance Report Form

Insurance Manager/ Principal Representatives

Section 11(4) of the Insurance Ordinance and Guidelines issued pursuant to Section 43 of the FSCO require every licenced Insurance Manager and Principal Insurance Representative to submit Annual Returns to the Commission by 31st March each year which comprise the following:

  1. Annual Compliance Statement: A copy of which is available on the TCIFSC website
  2. Form ASBRC 2/99: Statutory Books and Records
  3. Copy of current Professional Indemnity Insurance
  4. Annual Compliance Report Form

Sub- Agents

Section 11(3) of the Insurance Ordinance and Guidelines issued pursuant to Section 43 of the FSCO require every licenced Sub- Agent to submit Annual Returns to the Commission by 31st March which comprise the following:

  1. Confirmation in writing that the sub-agent is acting for only one insurance agent or insurance broker
  2. Name of insurance agent or insurance broker that the sub-agent is acting for
  3. If the sub-agent is a company - Confirmation that the TCIFSC was notified of all changes or proposed changes in the information (including those in its Business Plan) contained in or supplied in connection with the Company’s application for its TCI Insurance License.
  4. Annual Compliance Report Form

How does the FSC supervise and monitor its licencees?

The FSC has a cadre of Insurance Analyst staff possessing a wealth of experience in regulatory insurance, business and financial management, who conducts periodic assessments and reviews of individual licencees. These assessments include detailed financial review and statistical analysis along with industry data and known market conditions. Insurance personnel further ensure that all licencees are compliant with the respective licensing requirement and insurance best practices.