The British Virgin Islands (BVI) Financial Services Commission has introduced the BVI Insurance Act, 2008, which will come into force on 1 February 2010 and is intended to provide a more transparent and cost-effective framework for the jurisdiction’s insurance industry.

The new legislation will simplify the current governing statute and is supported by what are described as ‘robust’ regulations as well as the newly-introduced Regulatory Code.

It is hoped that the new Act and Code will encourage the development of new and more sophisticated types of insurance companies.

E C (Ned) Jackson, associate and insurance specialist in law firm Conyers Dill & Pearman’s BVI office, said: “Following calls to the offshore insurance community from the International Association of Insurance Supervisors and the Financial Action Task Force, BVI has enacted legislation which will prove more beneficial to companies doing business here.”

“The new Act makes significant improvements in terms of flexibility and user-friendliness and coupled with the recently introduced money laundering regime, will elevate BVI’s reputation as a pre-eminent offshore insurance jurisdiction.” he added. “We welcome these changes.”

Insurance legislation was first introduced in BVI in the mid-1990s, leading to a large influx of captive insurers, the majority of which were single parent vehicles. Subsequent amendments in 2001 and 2005 introduced the separate cell structure for insurance companies.