Governance, Risk and Compliance - The Bhutanese Insurance Industry

Published: Jan, 2017 | Pages: 33 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)

Summary

The report provides insights into the governance, risk and compliance framework pertaining to the insurance industry in Bhutan, including:

• An overview of the insurance regulatory framework in Bhutan.

• The latest key changes, and changes expected in the country’s insurance regulatory framework.

• Key regulations and market practices related to different types of insurance product in the country.

• Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in Bhutan.

• Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations.

• Details of the tax and legal systems in the country.

Synopsis

Timetric’s 'Governance, Risk and Compliance – The Bhutanese Insurance Industry' report is the result of extensive research into the insurance regulatory framework in Bhutan.

It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.

The report brings together Timetric’s research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

Scope

• The report covers details of the insurance regulatory framework in Bhutan.
• The report contains details of the rules and regulations governing insurance products and insurance entities.
• The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.
• The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
• The report provides details of taxation imposed on insurance products and insurance companies.

Reasons To Buy

• Gain insights into the insurance regulatory framework in Bhutan.

• Track the latest regulatory changes, and expected changes impacting the Bhutanese insurance industry.

• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.

• Understand key regulations and market practices pertaining to various types of insurance product.

Key Highlights

• The Bhutanese insurance industry is regulated by the Royal Monetary Authority of Bhutan.

• Non-admitted insurance is prohibited by the law. However reinsurers are permitted to operate without a license.

• 100% foreign direct investment is permitted in the Bhutanese insurance industry.

• Professional indemnity insurance for brokers is compulsory in Bhutan.

• Insurance premium tax is not imposed on insurance premiums in Bhutan.

 Table of Content

1 INTRODUCTION
1.1 What is this Report About?
1.2 Definitions

2 GOVERNANCE, RISK AND COMPLIANCE
2.1 Legislation Overview and Historical Evolution
2.2 Latest Changes in Regulation
2.3 Legislation and Market Practice by Type of Insurance
2.3.1 Life insurance
2.3.2 Property insurance
2.3.3 Motor insurance
2.3.4 Liability insurance
2.3.5 Marine, aviation and transit insurance
2.3.6 Personal accident and health insurance
2.4 Compulsory Insurance
2.4.1 Professional indemnity insurance for brokers
2.5 Supervision and Control
2.5.1 International Association of Insurance Supervisors
2.5.2 The Royal Monetary Authority
2.6 Non-Admitted Insurance Regulations
2.6.1 Overview
2.6.2 Intermediaries
2.6.3 Market practices
2.6.4 Fines and Penalties
2.7 Company Registration and Operations
2.7.1 Type of insurance organization
2.7.2 Establishing a local company
2.7.3 Foreign ownership
2.7.4 Types of license
2.7.5 Capital requirements
2.7.6 Solvency margin
2.7.7 Reserve requirements
2.7.8 Investment regulations
2.7.9 Statutory return requirements
2.7.10 Fee structure
2.8 Taxation
2.8.1 Insurance premium or policy taxation
2.8.2 Withholding taxes on premium paid overseas
2.8.3 Corporate tax
2.8.4 VAT
2.8.5 Captives
2.9 Legal System
2.9.1 Introduction
2.9.2 Access to court
2.9.3 Alternative dispute resolution

3 APPENDIX
3.1 Methodology
3.2 Contact Timetric
3.3 About Timetric
3.4 Timetric’s Services
3.5 Disclaimer

List of Tables

Table 1: Insurance Industry Definitions
Table 2: Bhutan– Insurance Regulatory Framework Key Features
Table 3: Bhutan– Life Insurance Regulatory Framework
Table 4: Bhutan– Property Insurance Regulatory Framework
Table 5: Bhutan – Motor Insurance Regulatory Framework
Table 6: Bhutan– Liability Insurance Regulatory Framework
Table 7: Bhutan– Corporate Tax Rates for the Financial Year 2017

List of Figures

Figure 1: Bhutan– Insurance Supervision and Control at Various Levels
Figure 2: Bhutan– Insurance Regulatory Frameworks for Company Registration and Operation