market bulletin

Ref: Y4958

Title

Licensing requirements for coverholders in Mauritius

PurposeTo inform the Lloyd’s market of licensing requirements for coverholders in Mauritius

Type

Event

From

Kim Swan, Senior Manager, International Regulatory Affairs

Date

6 January 2016

This bulletin is addressed to all Lloyd’s market participants with an interest in the delegationof underwriting authority to Mauritian insurance intermediaries. Lloyd’s underwriters may
appoint coverholders in Mauritius and this bulletin provides a brief summary of the licensing
requirements for Mauritian domiciled intermediaries to which a binding authority may begranted, and the implications of different licences.
1. Background
Lloyd’s underwriters were originally licensed under the Mauritian Insurance Ordinance 1959
and this approval was carried forward through subsequent insurance legislation, including
the Insurance Regulations 1988, resulting in Lloyd’s being able to write insurance andreinsurance in or from Mauritius under the current Insurance Act 2005.
As in any other territory, the standard coverholder approval process applies. In reviewing acoverholder application, it is a Lloyd’s requirement that the prospective coverholder islicensed appropriately locally. The local licensing requirements for coverholders are set outbelow.

2. Requirements for coverholders domiciled in Mauritius(a) Insurance Agent
A coverholder domiciled in Mauritius needs to be licensed as an Insurance Agent by theFinancial Services Commission, Mauritius (FSC Mauritius).
The coverholder must be a legal entity. In Mauritius, legal entities are incorporated/registered with the Corporate and Business Registration Department.

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Lloyd’s is authorised under the Financial Services and Markets Act 2000

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Further details about the incorporation/registration of legal entities may be found at:
http://companies.govmu.org/English/Pages/default.aspx(b) Where the coverholder intends to conduct solely or chiefly non-Mauritian
domiciled insurance and reinsurance business:
Where the coverholder intends to conduct solely or chiefly non-Mauritian domiciled
insurance and reinsurance business, in addition to being licensed as an Insurance Agent,
the coverholder may also apply for a Category 1 Global Business (GBC1) licence.
The Global Business (GB) framework is available in Mauritius to a resident corporation
which proposes to conduct business activities outside Mauritius. The GB framework isregulated by the FSC Mauritius.
In determining whether a coverholder holding a GBC1 licence is conducting mostly nonMauritian domiciled insurance and reinsurance business, the FSC Mauritius will take into
consideration the percentage of the revenue derived from the Mauritian and non-Mauritian
insurance and reinsurance business. The percentage of the revenue derived from the nonMauritian domiciled insurance and reinsurance business shall at all times exceed thepercentage of the revenue from the Mauritian domiciled insurance and reinsurancebusiness.
Further details about the GB framework may be found at:
http://www.fscmauritius.org/media/65458/gb_guide_25_01_12.pdf(c) Where the coverholder is conducting, or intends to conduct, solely or chiefly
Mauritian insurance and reinsurance business:
Where the coverholder is conducting, or intends to conduct, solely or chiefly Mauritian
insurance and reinsurance business, the coverholder needs to be licensed as an Insurance
Agent as detailed in point 2(a) above.
Please note that Mauritian insurance and reinsurance business relate to insurance policies
covering risks situated in Mauritius. Risks situated in Mauritius are defined in the Mauritian
Insurance Act 2005, an extract of which is set out at Appendix 1.
3. Applying for the licences
Applications for the Insurance Agent licence and the GBC1 licence are considered inparallel by the FSC Mauritius, and any application should be completed and submitted
simultaneously.

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Full details about the application process may be found at:
http://www.fscmauritius.org/media/36787/codified_list_180614.mht

4. Contact Details
Lloyd’s encourages prospective coverholders and those looking to appoint a coverholder in
Mauritius to notify Lloyd’s of these plans at the earliest opportunity.
Lloyd’s may be contacted at:Amit Khilosia, Lloyd’s Regional Manager, Africa
Telephone: +44 (0)20 7327 7167
Email: Amit.Khilosia@lloyds.com
OrThe Delegated Authorities Team
Telephone: +44 (0)20 7327 6275
Email: coverholders@lloyds.com

Further details about the coverholder application process may be found on the Lloyd’scoverholder web pages: https://www.lloyds.com/the-market/i-am-a/delegated-authority
For further information Lloyd’s International Trading Advice may also be contacted on:+44(0)20 7327 6677 or LITA@lloyds.com.

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Appendix 1
An extract of Section 2 of the Insurance Act 2005:“risk situated in Mauritius” means –(a) in the case where the insurance relates to property and buildings, or to buildings and thecontents, in so far as the contents are covered by the same insurance policy, any risk
related to property situated in Mauritius;(b) in the case where the insurance relates to vehicles of any type, any risk related to anyvehicles registered in Mauritius;(c) in the case where the insurance relates to travel or holiday risks, whatever the classconcerned, any risk related to travel or holiday if the policy covering the risk is of aduration not exceeding one year and the policy is issued in Mauritius,(d) in the case where the insurance relates to any risk of any kind, other than a riskspecified in paragraphs (a), (b) or (c), any risk of such kind if the policyholder is resident
in Mauritius;

Further details may be found in the Insurance Act 2005:
http://www.fscmauritius.org/media/61668/insurance-act-2005-.pdf

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