So What is the Cost to Establish a Captive in the BVI?

The costs involved are best illustrated in the order of the application process:

1. Consideration of the licence application by the Supervisor of Insurance requires a $500 fee. This is a once only fee.

2. Once the initial application has been approved the costs of incorporating an insurance company (with a capitalisation above $50 000) are approximately $700 plus registered agent fees of $350 (pro rated) and a government IBC fee of $1000.

3. Annual fees for a BVI Insurance company:

• Insurance Licence $2000
• Government IBC License Fee $1000 (for capitalisation over $50 000)
• Registered Agent Fee $350

4. Each captive needs to appoint an auditor. This might typically be $6,000-$10,000 annually for the small to medium sized companies.

5. Each captive must have a BVI Insurance Manager which for a core compliance service may be as little as $10,000 annually but of course each captive has differing needs that must be priced accordingly. Those requiring full insurance services with policy issue, loss settlement and close liaison with multiple carriers would be higher. We have captives with fees of over $50,000. Engagement fees to the point of license issue average around $8,000 - $12,000 for a straight forward application.