ICP 4 Licensing
A legal entity which intends to engage in insurance activities must be licensed before it can operate within a jurisdiction. The requirements and procedures for licensing must be clear, objective and public, and be consistently applied.
Licensing requirements
4.1 |
The insurance legislation:
- includes a definition of insurance activities which are subject to licensing;
- prohibits unauthorised insurance activities;
- defines the permissible legal forms of domestic insurance legal entities;
- allocates the responsibility for issuing licences; and
- sets out the procedure and form of establishment by which foreign insurers are allowed to conduct insurance activities within the jurisdiction.
|
4.2 |
A jurisdiction controls through licensing which entities are allowed to conduct insurance activities within its jurisdiction.
|
4.3 |
Licensing requirements and procedures are clear, objective and public, and are consistently applied. The applicant is required at least to:
- have sound business and financial plans;
- have a corporate or group structure that does not hinder effective supervision;
- establish that the applicant’s Board Members, both individually and collectively, Senior Management, Key Persons in Control Functions and Significant Owners are suitable;
- have an appropriate governance framework; and
- satisfy capital requirements.
|
Requirements on the Supervisor
4.4 |
The supervisor assesses applications, makes decisions and informs applicants of the decision within a reasonable time, which is clearly specified, and without undue delay.
|
4.5 |
The supervisor refuses to issue a licence where the applicant does not meet the licensing requirements. Where the supervisor issues a licence, it imposes additional requirements, conditions or restrictions on an applicant where appropriate. If the licence is denied, conditional or restricted, the applicant is provided with an explanation.
|
4.6 |
A licence clearly states its scope.
|
4.7 |
The supervisor publishes a complete list of licensed insurance legal entities and the scope of the licences granted.
|
Foreign operations
4.8 |
In deciding whether and if so on what basis, to license or continue to license a branch or subsidiary of a foreign insurer in its jurisdiction, the supervisor consults the relevant supervisor(s) as necessary.
|
4.9 |
Where an insurance legal entity is seeking to conduct cross-border insurance activities without a physical presence in the jurisdiction of the host supervisor, the host supervisor concerned consults the home supervisor, as necessary, before allowing such activities.
|