Governance, Risk and Compliance - The Bhutanese Insurance Industry

Table of Contents
1 INTRODUCTION 6
1.1 What is this Report About? 6
1.2 Definitions 6
2 GOVERNANCE, RISK AND COMPLIANCE 8
2.1 Legislation Overview and Historical Evolution 9
2.2 Latest Changes in Regulation 10
2.3 Legislation and Market Practice by Type of Insurance 12
2.3.1 Life insurance 13
2.3.2 Property insurance 13
2.3.3 Motor insurance 14
2.3.4 Liability insurance 16
2.3.5 Marine, aviation and transit insurance 16
2.3.6 Personal accident and health insurance 16
2.4 Compulsory Insurance 17
2.4.1 Professional indemnity insurance for brokers 17
2.5 Supervision and Control 18
2.5.1 International Association of Insurance Supervisors 18
2.5.2 The Royal Monetary Authority 19
2.6 Non-Admitted Insurance Regulations 20
2.6.1 Overview 20
2.6.2 Intermediaries 20
2.6.3 Market practices 20
2.6.4 Fines and Penalties 20
2.7 Company Registration and Operations 21
2.7.1 Type of insurance organization 22
2.7.2 Establishing a local company 22
2.7.3 Foreign ownership 24
2.7.4 Types of license 24
2.7.5 Capital requirements 25
2.7.6 Solvency margin 26
2.7.7 Reserve requirements 26
2.7.8 Investment regulations 26
2.7.9 Statutory return requirements 27
2.7.10 Fee structure 28
2.8 Taxation 29
2.8.1 Insurance premium or policy taxation 29
2.8.2 Withholding taxes on premium paid overseas 29
2.8.3 Corporate tax 29
2.8.4 VAT 29
2.8.5 Captives 29
2.9 Legal System 30
2.9.1 Introduction 30
2.9.2 Access to court 30
2.9.3 Alternative dispute resolution 31
3 APPENDIX 32
3.1 Methodology 32
3.2 Contact GlobalData 32
3.3 About GlobalData 33
3.4 GlobalData's Services 34
3.5 Disclaimer 35

List of Tables
Table 1: Insurance Industry Definitions 6
Table 2: Bhutan- Insurance Regulatory Framework Key Features 8
Table 3: Bhutan- Life Insurance Regulatory Framework 13
Table 4: Bhutan- Property Insurance Regulatory Framework 13
Table 5: Bhutan - Motor Insurance Regulatory Framework 14
Table 6: Bhutan- Liability Insurance Regulatory Framework 16
Table 7: Bhutan- Corporate Tax Rates for the Financial Year 2017 29

List of Figures
Figure 1: Bhutan- Insurance Supervision and Control at Various Levels 18
Figure 2: Bhutan- Insurance Regulatory Frameworks for Company Registration and Operation 21