Insurance Brokers

As of January 30, 2014, and pursuant to Article 27a, paragraph 1, of the State Ordinance on the Supervision of the Insurance Business (SOSIB), insurance brokers have been placed under the supervision of the CBA by virtue of the State Decree on the supervision of insurance brokers (AB 2014 no. 6).

Licensing requirements

It is prohibited to be active as an insurance broker, unless the insurance broker is licensed by the CBA. The CBA maintains a list of all licensed insurance brokers. Insurance companies and credit institutions licensed by the CBA are exempted from this prohibition (Article 2, paragraph 2, subsections a and b, of the State Decree). Travel agents and travel organizations are exempted insofar it concerns intermediation for travel insurance contracts (Article 2, paragraph 2, subsection c, of the State Decree). Before granting a license, the CBA will assess whether the applicant is able to comply with all licensing requirements, including the fitness and properness of (qualifying) shareholders and key persons (e.g. members of the Management and Supervisory Board), and all relevant laws and regulations (see below). 

Transitional provisions

Insurance brokers already active in Aruba as of January 30, 2014, are granted a transitional period of six months (ending on July 30, 2014) to amend their processes and systems in order to be able to meet the requirements of State Decree regulating insurance brokers and to submit a license request. Insurance brokers that do not file a license request will have to cease their activities as of July 30, 2014.

Ongoing supervision

Via off‐site surveillance and periodic on‐site examinations the CBA will conduct ongoing oversight over the insurance brokers. Insurance brokers must comply with the relevant requirements of the SOSIB insofar applicable to insurance brokers and the relevant requirements of the State Decree. Also, insurance brokers must comply with the financial sanctions regulations. Furthermore, life insurance brokers must comply with the State Ordinance on the Prevention and Combating Money Laundering and Terrorist Financing (AML/CFT State Ordinance) (AB 2011 no. 28) and the Handbook for the prevention and detection of money laundering and combating the financing of terrorism for financial and trust services providers (AML/CFT Handbook) issued by the Centrale Bank van Aruba. In this respect, life insurance brokers must take duly notice of the Financial Actions Task Force (FATF) and the Caribbean Financial Action Task Force (CFATF)warning lists, periodically circulated by the CBA.

Note also that the CBA has been granted supervisory powers and, in case of non‐compliance, the CBA has a wide range of tools available to enforce compliance.