Supervision - Insurance companies

The State Ordinance on the Supervision of the Insurance Business (AB 2000 no. 82) provides the CBA with a solid legal base for supervising life and general insurance companies. The supervision of insurance companies of the CBA aims primarily at maintaining the stability and integrity of the financial system and safeguarding the interests of the policyholders and other beneficiaries. Mainly via off‐site surveillance and periodic on‐site examinations the CBA conducts ongoing oversight over the insurance business. 

1. Admission/ market entry - Insurance companies incorporated in Aruba and the branches and agencies in Aruba of insurance companies incorporated outside Aruba need a license from the CBA before they can start their activities. Reference is also made in this regard to the admission policy for insurance companies. 
2. Law and regulations - Insurance companies in the possession of a license from the CBA have to continuously comply with the supervisory laws and regulations.
   • Supervisory laws applicable to insurance companies:
     • State Ordinance on the Supervision of the Insurance Business (English)
     • State Ordinance on the Supervision of the Insurance Business (Dutch)
     • State Decree Representative Insurance Companies (Dutch)
     • State Decree Representative Insurance Companies (English)
   • Regulations applicable to insurance companies:
     
     • Prudential Supervision Manual for Insurance Companies
     • Directive on Sound Business Operations
     • Policy Paper on Business Continuity Management
   • Life insurance also fall under the scope of the AML/CFT laws and regulations.
3. Enforcement - In cases where the CBA identifies a situation of noncompliance with the applicable supervisory laws and regulations, formal or informal (a normative conversation or a written warning) measures are considered. The decision whether to apply formal or informal measures depends, among other things, on the seriousness of the case. Please refer to the CBA’s Enforcement policy for more information.

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