The Parliament of the Cook Islands has passed the Captive Insurance Act 2013, following the introduction of the foundations for the industry in June 2012.
In a statement, minister Mark Brown emphasised the importance of the industry to the country’s economy and indicated that there has been strong interest in captive insurance from overseas insurance firms.
Brown said: “The government has made a commitment to diversifying our economy by encouraging, strengthening and promoting our financial services sector. The passing of the captive insurance act will increase business opportunities and is an important step in the growth of this key industry to our economy.”
With only two other finance centres in the Asia Pacific region offering captive legislation, the Cook Islands hopes to tap into the under-served regional market.
Jenner Davis, CEO of the Cook Islands Financial Services Development Authority, said: “Our first focus will be on New Zealand and Australia corporations from which we have already had interest.”
“The legislation was designed to provide advantages over current options for the region through flexibility and ‘right touch’ regulation. We also offer cost stability, relevant expertise, and a convenient location.”
The legislation is the first in the industry to also allow domestic companies to avail themselves of the service by forming a captive through a Cook Islands company.
