The British Virgin Islands (BVI) has implemented new legislative measures that will introduce segregated portfolio companies into the jurisdiction.
The recently published Virgin Islands Insurance (Amendment) Act 2015 and the Insurance Amendment Regulations 2015 will also allow two new categories of captive licence.
BVI insurers will be able to submit an application to be licensed as a segregated portfolio company (SPC). One of the key features of SPCs is that the assets and liabilities of each cell are statutorily ring-fenced from the assets and liabilities of all other cells of the SPC.
Adam Rhodes, a consultant at law firm Harneys, wrote in a recent article: “This ring-fencing makes the segregated portfolio company ideally suited for captive insurers with multiple programmes, particularly where programmes are offered to more than one insured.”
Under the new legislation, the category E licence can be issued to BVI companies to writes related-party business.
The new category F licence, meanwhile, can be issued to BVI companies that write related-party and third-party business.
Rhodes explained: “These two new categories should provide greater flexibility and opportunities for carrying out captive insurance business from within the British Virgin Islands.”
