Mauritius to attract African captive insurance business
Mauritius has been positioned as the domicile of choice for African business since the enactment of its Captive Insurance Act in December last year, according to Cim Global Business.
Cim Global Business revealed that African companies are attracted to Mauritius because of its membership of the International Association of Insurance Supervisors (IAIS) and its developed reinsurance market.
The Captive Insurance Act currently only applies to pure captives, which means the business is restricted to the risks of the parent and affiliated corporations.
On 25 April of this year, the Financial Services Commission in Mauritius issued accompanying rules that lay out the requirements for solvency,
assets, capital and other regulatory issues for captives domiciled in Mauritius.
One of the requirements includes the pure captive insurer maintaining a minimum capital of $85,000.
Also, a change to the Income Tax Act provides for an attractive tax holiday on
income derived by captive insurers for a period not exceeding ten years.