Application process

Applicants should submit an application form and additional documentation with all relevant documents. We will not consider an application complete if there are any outstanding documents.

The application pack must consist of:

• Application Fee;
• Application Form;
• Solvency Capital Requirement forecast submitted on a “best-endeavours” basis. The firm’s figures should reflect its projected risks over the next 3 years as a best estimate and ensure that there is sufficient capital assessed against the type of firm. This is in accordance with the technical standards published by the European Insurance and Occupational Pensions Authority (EIOPA) in April 2014.
  • Stress Test on Financial Projections;
  • Profit and Loss account;
  • Balance Sheet
• Regulated Individual Form (for each Regulated Individual);
• Non-Executive Director Form (for each non-executive director);
• Controller Form (for each Controller);
• Business Plan;
• A scheme of operations in accordance with Article 23 of the Solvency II Directive;
• Details on how the firm complies with the system of governance referred to in Chapter IV, Section 2 of the Solvency II Directive;
• Risk methodology and Framework;
• Supporting Policies and Procedures;
• Details of Source of Wealth/Source of Funds (including final ownership structure, details of capital within the group, how the funding will be provided, access to further funds and 3-year financial statements for companies providing the funding. If an individual will provide more than 10% of the funding, we will require an independently verified statement of wealth);
• Business Continuity Plan; and
• Any other document the applicant considers the GFSC should take into consideration as part of the application.

Please request cloud access via E-mail at authorisations@fsc.gi  in order to submit the Application Pack. Please include the following information in the subject field: ‘Name of Regulated Firm/Applicant – Application’. Paper copies are not required unless indicated by the Authorisation team.

Please note that we accept signed signature copies sent via e-mail and electronic signatures, which must originate from the Regulated Firm /Applicant’s domain.  

Additional Services

Regulated Firms that are already authorised by the GFSC may apply to extend their permission to provide additional financial or professional services. If you are seeking authorisation for additional services, please contact the Authorisation team in order for us to determine what documents required for submission.

The below sets out an overview of the expected information requested:

• Application Fee (if applicable);
• Revised Business Plan;
• Financial Projections for the next 3 years, clearly identifying the impact of the additional business:
• Profit and Loss account
• Balance Sheet
• Stress Test on Financial Projections
• Regulated Individual Form (for any new individual carrying out a Regulated Individual function);
• Controller Form (for any new Controllers within the structure); and
• Any other document the applicant considers the GFSC should take into consideration as part of the application.

 The Regulated Firm should consider the following:

• What new services/permissions it requires;
• The type of new business/activity;
• Where the business will be sourced;
• Resources to deal with the additional business;
• The impact of the additional business on its capital requirements; and
• What changes are being effected to its systems and controls.

New Cell

In order for the GFSC to be able to consider the approval of a new cell, the following information and documents are required for submission:

• Application Fee 
• List the names, addresses and nationalities of all cell users, together with the number of class of shares held, or to be held, directly or on their behalf.  
• Controller Form should be used for all individuals or corporate bodies with 10% or more beneficial interest.  In the case of ownership by corporate bodies, please provide an organisation chart showing all associated and affiliated companies, including details of person(s) owning less than 10%.
• Please provide the latest audited financial statements of the immediate parent of the proposed cell user, and, if applicable, the consolidated accounts of the group.
• What is the proposed capital for the cell and how is it to be subscribed?
• Provide details of signatories to the cell’s bank mandate.     
• State the nature of the cell user’s business.  
• State the nature of the risks to be covered and the classes of business to be transacted. Please provide details of the losses expected, historic loss patterns and ratios for the type of business and the due diligence performed on this data to verify its reliability. Please provide evidence to support this analysis.
• Please state the sources of business.
• Please state the guiding principles as to reinsurance including the cell’s maximum retention per risk or event after all reinsurance ceded and the names of the principal reinsurers.  
• Financial Projections, including, for the first three years after approval of the cell
  • estimates relating to expenses of management (other than costs of installation) and in particular to current general expenses and commissions;
  • estimates relating to premiums or contributions both gross and net of reinsurance and broken down between Gibraltar, EEA States and elsewhere and to claims (after all reinsurance recoveries);
  • a forecast balance sheet;
  • a forecast cash flow statement; and
  • estimates relating to the financial resources intended to cover underwriting liabilities and the margin of solvency.
• Please demonstrate the effect that the inclusion of the cell will have on the overall solvency of the PCC.   
• Have any of the parties connected with this application, previously applied either individually or in conjunction with others, for authority to transact insurance business in any other jurisdiction?  If so, please provide details.     
• Will the insurance manager provide underwriting services to the company?
• Will the insurance manager handle the claims?  If not, who will?      
• Please state fully how any risk gap can be overcome.
• State any connection between the cell (including directors and officers of the cell user) and any person or organisation directly or indirectly (e.g. insurance brokers, etc.) by the cell.
• State whether the cell user proposes to make any loans to related parties.
• Signed Declaration – stating that the proposer is aware that it is an offence to furnish false or misleading information.
• Any other document the applicant considers the GFSC should take into consideration as part of the application.

Please request cloud access via E-mail at authorisations@fsc.gi in order to submit the Application Pack. Please include the following information in the subject field: ‘Name of Regulated Firm– Cell Application’. Paper copies are not required unless indicated by the Authorisation team.

Please note that we accept signed signature copies sent via e-mail and electronic signatures, which must originate from the Regulated Firm /Applicant’s domain.  

Capital requirements

The MCR is the minimum amount of capital the insurance company needs to cover its risks. The absolute floor of the MCR is as below: 

Further information on the calculation of the MCR is in Article 129 of the Solvency II Directive. The SCR is a risk responsive capital measure calibrated to ensure each insurer will be able to meet its obligations over the next 12 months with a probability of 99.5%. Further information on the calculation of the SCR is in Chapter VI, Section 4 of the Solvency II Directive.

Read more about our approach to Solvency II. 

Additional Information 

The business plan should comprehensively set out:

• What services the firm intends to carry out and how it proposes to conduct the activity;
• Structure charts outlining both in-house and outsourced operations;
• Board structure and terms of reference, including details of any sub-committees set up by the Board to assist it to carry out its duties;
• The firm’s risk management function;
• An assessment of the main risks facing the firm and how these are to be mitigated;
• The resources that are to be made available and the systems that the applicant intends to employ;
• Target market;
• How clients will be sourced;
• How records will be maintained;
• How, and by whom, any significant decisions will be made;
• Details of outsourcing arrangements and how the firm will monitor and oversee these, including the controls implemented by the firm on these arrangements;
• Reinsurance information; and
• If the applicant forms part of a larger group, details should also be provided of the activities of the group and a description of its structure.

The GFSC will be seeking evidence that the firm has considered, documented and implemented the risk, compliance and operational issues associated with the proposed activities. 

We will not consider an application complete if there are any outstanding documents.