Friday, November 20, 2015

Public Awareness: FSM Insurance Board

The Insurance Board or Commission of the Federated States of Micronesia is mandated: (1) To regulate insurance business, (2) To undertake the licensing and supervision of insurers, insurance agents, insurance solicitors and insurance brokers, (3) To protect the interest of policyholders, and (4) To promote the soundness, stability and development of the insurance system in the FSM. By legal requirement, “insurance business” shall not be carried out in the FSM, unless the insurer, agent, broker or solicitor is authorized, meaning it must first be registered or licensed. “Insurance business” is defined under Section 102 of title 37 FSMC.  Registration and licensing are prerequisites to engaging in insurance business and the objective is to ensure the insurer, agent, broker or solicitor is sound and safe so the policyholders are afforded some degree or assurance of protection. 

The captive insurance system in the Federated States of Micronesia continues to experience growth. Currently, there are seventeen (17) captive licenses, and eight captive management firm licensees. It is anticipated that by end of 2015, there will be eighteenth (18th) captive licensees. Early this month, the Insurance Board attended and made a presentation at the FSM Captive Insurance Council’s seminar in Tokyo. It is hoped by and through such efforts, additional captive applicants will see FSM as a favorable captive domicile for their captives.  

The Insurance Board is also responsible for regulating the commercial insurance system of the country. There are currently five foreign insurers registered in the Federated States of Micronesia for life, non-life and Property and Casualty. Below is the registered insurer with respective licensed agent:  

                                INSURER:                                                             AGENT
1.       Liberty Mutual Insurance Corporation              Moylan’s Insurance
2.       Dongbu Insurance Company                               Moylan’s Insurance 
3.       FirstNet Insurance Company                               Moylan’s Insurance
4.       NetCare Insurance Company                               Moylan’s Insurance
5.       Pacific Indemnity Insurance Company              Actouka Insurance

Individual Assurance Company (FSM), Inc. has also been licensed, conditionally and temporary, as a domestic insurer by the Insurance Board.   

There are currently two pending foreign insurer registration applications: Plateau Insurance Company and Century Insurance Company (Guam). Plateau Insurance Company is applying for registration to transact credit life insurance policy, while Century Insurance Company (Guam) is applying to transact non-life insurance business.

There are two licensed brokers, namely: Micronesia Insurance Broker Company, and Oceania Insurance Company. 

Agent represents the interests or works for the insurer, while a broker represents or works for the insured or policyholder. 

For any questions, please call us at 691- 320-3423.  

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