The Panama Ministry of Economy and Finance (MEF) has withdrawn a proposal to change their captive insurance laws, according to Panamanian newspaper La Prensa.
La Prensa spoke to the Panama minister of Economy and Finance, Dulcidio De La Guardia, who confirmed that the proposal to alter the law had been withdrawn.
Presently, risks of a local nature are not insurable in Panama and captives based in the domicile can only cover international risks.
Plans had been in place to alter the law to allow captive insurers to cover local risks, which it was hoped would increase the attractiveness of the domicile, however, this proposal was withdrawn along with a number of other modifications proposed by the MEF.
The MEF has yet to respond to a request for comment.
