Members of the Nevis Island Assembly observe a minute’s silence in memory of the late Mr Levi Morton.

Charlestown Nevis (April 7, 2004) -- The Nevis Island Assembly Wednesday unanimously passed the Nevis International Insurance Ordinance 2004 introduced by the Honourable Minister of Finance, Mr Vance Amory. The bill sailed through all stages with only a minor (typographical) amendment.

 

During the second reading of the bill, Mr Amory, who is also the Premier of Nevis, explained that the purpose of the bill “is to provide the legal framework and to allow the establishment and the regulation of companies doing offshore insurance business from within Nevis.”

 

He noted that the offshore financial services sector had been playing a very significant role in the continued development of Nevis and while the government reflected in its books, some EC$9 million in direct revenue, which is used for the development of Nevis, there was a much larger spin-off to the Nevis economy and to the foreign exchange capacity.

 

Taking into consideration that service providers charge more for the business they transact, and using the benchmark of EC$9 million, the Premier estimated that more than EC$36 million comes into the economy of Nevis.

 

“Bringing this legislation to the House today,” noted the Premier, “is another step by this government to provide additional products which can continue to provide revenue for the government, which will provide benefits for the people of this country. It will also provide a significant opportunity for earning foreign reserves and for continued employment in the sector.”

 

International Insurance is primarily what is called captive insurance business, explained Premier Amory. It refers to business where the insured is a parent or an affiliated company of a registered insurer. It reduces the risk, which is generally associated with insurances, and the collection of revenue and how a number of businesses engaged in insurance have been functioning over the years.

 

The Government will ensure that the persons who are registered insurers, must have a physical presence on the island, as it means that the person would have to look for office space. The registered insurers will have support staff to assist them in the office, which will then increase opportunities for employment.

 

“There are provisions also made for establishing a registrar to manage this specific aspect of the offshore financial services sector and we are making provisions for the registered agents to be strictly monitored by the registrar, but also providing that the registered agent or manager has responsibility to report to the registrar if he or she has knowledge of poor conduct of other registered insurer,” observed Premier Amory.

 

While supporting the bill, leader of the opposition Nevis Reformation Party, the Hon Mr Joseph Parry, said that the bill even with its good intentions, was such a technical document and he would have required more time to read and understand it, including seeking for legal interpretation from his lawyer, adding that it should not have been rushed through the house.

 

“I support the bill,” said Mr Parry. “All I will say to the government (is) I think we do not have a regulator at this particular time - no fault of the government. My advice to the government; get a good regulator. Don’t get anybody. Get somebody who has an understanding of the offshore industry even if you have to pay them US$100,000.00 a year. It is better to do that than to lose millions of dollars.”

 

When the Nevis Island Assembly opened for business at 10:00 a.m., President of the Assembly, the Honourable Mrs Marjorie Morton said that the House wished to recognise posthumously the contribution of a past member of the House, the late Hon Levi Morton, who died last month, and requested the House to observe a minute’s silence in his honour.