Turks & Caicos Islands
The Turks & Caicos Islands (TCI) has developed into one of
the most prominent jurisdictions for the incorporation and
licensing of a particular nice insurance product, commonly
referred to as Producer Owned Reinsurance Companies or Producer
Affiliated Reinsurance Companies (PARCs).
“Typically, PARCs are small reinsurance companies that reinsure
the risks of customers of select service providers, lenders and/or
retailers,” says Adrian Corr, partner at Miller Simons O’Sullivan, and
the head of the TCI International Insurance Association sector.
Corr says that during his 25 years of practising insurance law in the
jurisdiction he has seen an exponential growth in the establishment
of these PARCs.
Under the current legislation of the TCI, PARCs are defined as
companies (i) which carry on the business of reinsurance; (ii) whose
affairs are under the control of a direct writer (which are themselves
licensed, rated and regulated insurance companies); and (iii) which
are beneficially owned by the producers of the business reinsured.
Corr notes that, for the purposes of the TCI legislation, producers
are deemed to be entities, trusts, and/or individuals related to the
producers of the business reinsured.
He goes on to explain that work is currently at an advanced stage
with respect to updating the current insurance legislation to introduce
more modern definitions to cover the types of insurance products
currently available in today’s market. These include guaranteed
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