Mauritius: Amendments to the FSC Guide to Global Business

Section 71(6) of the Financial Services Act 2007 has been amended by the Economic and Financial Measures (Miscellaneous Provisions) Act 2013 to provide greater flexibility for Category 1 Global Business Companies (GBC1s) to conduct business in Mauritius, subject to such restrictions, terms and conditions as may be provided in any guidelines issued by the FSC.

Sections 4 and 5 of Chapter 4 of the Guide to Global Business have been amended to provide guidance to investors and service providers with respect to the determination of conduct of business by GBC1s.

The FSC will take appropriate actions where a holder of a Category 1 Global Business Licence fails to comply with any guidelines or Rules issued by the FSC.

Sections 4 and 5 of Chapter 4 of the Guide to Global Business

FAQ on Conduct of Global Business

The Lawyer - 2014 Offshore Top 30 rankings and analysis

The Lawyer’s annual survey of the 30 biggest offshore firms shows the offshore legal market had a solid 2013, with several firms reporting double-digit increases in turnover and a pronounced pick-up in activity levels.

See the full analysis of this year’s survey, The byteback begins, and the offshore top 30 rankings.

Six Senses to open on the private island of Félicité in the Seychelles

Adding to their wealth of experience operating extraordinary Indian Ocean resorts, Six Senses Hotels Resorts Spas announces their first resort in the Seychelles called Six Senses Zil Pasyon. Scheduled to open in 2015, the resort is located on the private island of Félicité. The island is approximately 55 kilometers, or 30 nautical miles northeast of Mahe, with access by helicopter from the International Airport or a short boat ride from neighbouring La Digue and Praslin islands.

Félicité is one of the most dramatically beautiful isles in the 115-island nation featuring massive granite boulders that fringe the shoreline and create an air of drama and mystery. Measuring 264 hectares (652 acres), the resort will create a very personal destination that embraces nature whilst offering every creature comfort. A sanctuary within the natural environment, the island features prolific indigenous and abundant flora and fauna – the ideal site for a Six Senses project and the sole resort on the island. Six Senses Zil Pasyon will be located on the north side of the island and will occupy less than one third of the total land.

With just 28 one-bedroom villas, two (2) two-bedroom villas and 17 private residences, all with private pools, Richard Hywel Evans of Studio RHE has created an oasis of serenity encircled by the Indian Ocean, while Six Senses will oversee interior design.

The resort will include two restaurants, a bar, retail outlets, a recreation center and Six Senses Spa in addition to a well-appointed gym and swimming pool. It will also provide intimate function space ideal for board meetings, weddings and special celebrations.

White sandy beaches and azure waters compliment the picturesque landscape of untouched beauty, offering guests the opportunity to swim with turtles right off the main beach. There are unsurpassed vistas of the ocean and surrounding islands from the higher points on the island.

“It is a great honour for Six Senses to be selected as the resort operator by Félicité Island Development Limited,” said Bernhard Bohnenberger, president of Six Senses Hotels Resorts Spas. “The island of Félicité is absolutely gorgeous and we eagerly look forward to creating a rich Six Senses experience for our guests on this pristine private island.”

“The development of Six Senses Zil Pasyon on Félicité Island is the result of visionary ambition of the shareholders and the Zil Pasyon team resulting in this rare luxurious and ecologically sensitive development offering,” said Francis Savy, director of Félicité Island Development Limited. “It will expose Six Senses values across all touch-points with a genuine unified message - delivering on the promise.”

“We are extremely pleased to be partnering with Six Senses,” said Kishore Buxani, director of Félicité Island Development Limited who signed the agreement with Bohnenberger. “We truly believe the combination of our island development and the brand will create a truly unique and exceptionally memorable experience for our guests.”

Seychelles offers a myriad of water sports alternatives including diving, snorkeling, sailing, windsurfing, yacht charter and island-hopping boat trips. Located outside the cyclone belt, it offers year-round activities. In addition, there are numerous scenic and inspirational walking trails amidst the islands lushness. Offering perpetual summer, Seychelles is also a popular and favoured destination for weddings and honeymoons.

The parties were advised by Jones Lang Lasalle Hotels (Singapore) and Mukesh Valabhji of the Capital Management Group (Seychelles). 

About Six Senses Hotels Resorts Spas

Six Senses Hotels Resorts Spas is a hotel and spa management company comprised of nine resorts and 28 spas under the brand names Six Senses, Evason and Six Senses Spa.

Set to double in size over the next three years, Six Senses operates resorts in far-flung locations featuring incredible natural beauty. Known for its unique and diverse design personality, each property is supported by a leadership commitment to community, sustainability and wellness.

Six Senses Spa offers a wide range of holistic wellness, rejuvenation and beauty treatments administered under the guidance of expert therapists. Six Senses Spa is also located in prestigious hotels and resorts around the globe.

Evason introduces a collection of unique resorts that follow the Six Senses philosophy of uncompromised responsibility to sustainability and to the community. Family friendly, these properties also provide a strong value focus while offering a vast array of guest services and personal attention.

Chairman Hensarling Delivers Opening Statement at Hearing on Monetary Policy and State of the Economy

We welcome Chair Yellen for her first of many Semi-Annual Humphrey-Hawkins appearances before our Committee. 

Chair Yellen, you may recall that just two months after Alan Greenspan became Fed Chairman in 1987 the stock market crashed. At that time Paul Volcker sent him a short note that read: “Congratulations. You are now a central banker.” Chair Yellen, you face the daunting prospect of unwinding a Fed balance sheet, the size and composition of which we have never seen before, all of this in the face of an economy that is under-performing at best. So allow me to paraphrase: “Congratulations, you are now the Chair of a Central Bank.”

Chair Yellen, we look forward to working with you to ensure that the Federal Reserve has the tools it needs to operate effectively into the next century. We also look forward to working with you closely as this Committee embarks upon its year-long Federal Reserve Centennial Oversight Project. Any agency or bureau of government that is 100 years old probably needs a good check-up, especially one as powerful as yours. And I remind all, independence and accountability are not mutually exclusive concepts.

Perhaps the most critical issue we must examine is the limit of monetary policy to actually promote a healthy economy. We have now witnessed both the greatest fiscal and monetary stimulus programs in our nation’s history, and the results could not be more disappointing. Despite being almost five years into the so-called Obama recovery, we still see millions of our fellow citizens unemployed or underemployed, shrinking middle income paychecks and trillions of dollars of new unsustainable debt. 

Why is the non-recovery recovery producing only one-third the growth of previous recoveries? By one estimate, the Obama administration has imposed $494 billion in new regulatory costs upon our economy. From the two-and-a-half million jobs the CBO has now announced Obamacare will cost us to the incomprehensible Volcker Rule, business enterprises are simply drowning in regulatory red tape as they attempt to expand and create more jobs. Monetary policy cannot remedy this. 

What else is different from previous recoveries? The largest tax increases in American history. More than $1.5 trillion in higher taxes from both the fiscal cliff agreement and Obamacare. And these taxes principally fall upon small businesses, entrepreneurs and investors -- again, as they try to bring about a healthier economy and create jobs. Monetary policy cannot remedy this either. 

What else is different? Fear, doubt, uncertainty and pessimism that has arisen from the erosion of the rule of law. Never before in my lifetime has more unchecked, unbridled discretionary authority been given to relatively unaccountable government agencies. We are slipping from the rule of law to the rule of rulers. To punctuate this point, the President recently reminded us he has a pen and phone to essentially enact whatever policies he alone sees fit. Regrettably, he doesn’t seem to have handy a copy of the Constitution. I suppose the Fed could send him one, and perhaps throw in a copy of of Milton Friedman’s Capitalism and Freedom, although I doubt it would do much good.

There are clearly limits to what monetary policy can achieve but much it can risk. Thus, the roughly three-and-a-half trillion dollar question remains whether QE3 will continue to taper slowly, whether it will end abruptly, or simply morph into QE infinity? We look forward to hearing the Chair’s thoughts and intentions on the matter. 

As part of our Centennial Oversight project, QE will also cause our Committee to thoroughly examine the Federal Reserve’s unprecedented role in credit allocation, a focus distinct from its traditional role in monetary policy. Should the Fed pick distinct credit markets to support while ignoring others? This creates clearly winners and losers and under the Fed’s current policies seniors on fixed incomes are clearly losers as we continue to witness the blurring of lines between Fiscal and monetary policy.

This committee will also examine the Federal Reserve’s role as a financier and facilitator of our President’s unprecedented deficit spending. Since the Monetary Accord of 1951 between the Federal Reserve and the Treasury is has been clear that the Federal Reserve should be independent of the President’s fiscal policy. The question is, though, is it?

We will also consider how the Federal Reserve has undertaken the expansive new banking regulatory powers it obtained under the Dodd-Frank Act, and why it fails to conduct formal cost-benefit analysis. We will also consider whether Dodd-Frank has constrained the Fed’s 13(3) exigent powers properly, and precisely what should its role of lender of last resort be. 

We will closely examine an old debate in monetary policy between rules and discretion. During successful periods in the Federal Reserve’s history, like the Great Moderation of 1987-2003, the central bank appeared to follow a clear rule. Today it seems to favor a more amorphous forward guidance, shifting from calendar-based, to tight thresholds, to loose thresholds which arguably leaves investors and consumers lost in a hazy mist as they attempt to plan their economic futures and create a healthier economy.

Chair Yellen, I look forward to working with you as we examine these issues and to ensure that in the 21st century the Federal Reserve has a well-defined, specific mission, that it has both the expertise and resources to effectively accomplish.

Panel I

The Honorable Janet L. Yellen, Chair, Board of Governors of the Federal Reserve System

Monetary Policy Report, 11 February 2014

Panel II

Dr. John B. Taylor, Mary and Robert Raymond Professor of Economics, Stanford University

Dr. Mark A. Calabria, Director, Financial Regulation Studies, Cato Institute

Ms. Abby M. McCloskey, Director, Economic Policy, American Enterprise Institute

Dr. Donald Kohn, Senior Fellow, Economic Studies, Brookings Institution

Mauritius: Advertisement by Global Business Corporations & Applicants for Global Business Licence

CL140214 – 18 February 2014

CIRCULAR LETTER - CL140214

To: Management Companies &

      Applicants of Global Business Licences

Dear Sir/Madam,

ADVERTISEMENT BY GLOBAL BUSINESS CORPORATIONS & APPLICANTS FOR GLOBAL BUSINESS LICENCE

This Circular Letter is issued by the Financial Services Commission (the “Commission”) in line with its statutory mandate to take measures for the better protection of consumers of financial services and to ensure the sound conduct of business in the financial services and the global business sectors.

It has come to the attention of the Commission that some companies which have submitted an application for a Global Business Licence to the Commission are advertising that they are licensed and/or regulated by the Commission, prior to the Licence being granted.

The Commission reiterates that the submission of an application for a Licence to the Commission does not mean that a Licence has been granted nor that the applicant can assume that a Licence will be granted. You may refer to the Press Communiqué dated 17 April 2013.

Your attention is also drawn to section 31 of the Financial Services Act 2007, which provides that:

“No person, other than a person licensed, authorised or approved under a relevant Act, shall publish or cause to be published an advertisement in connection with the conduct of an activity or provision of a service which requires a licence, approval, authorisation or registration under a relevant Act”.

Applicants for the Global Business Licences are hereby informed that any company that falsely holds itself out as holding a license issued by the Commission will be subject to regulatory actions by the Commission.

Furthermore, as service providers to Global Business Companies, Management Companies are requested to exercise due care in their business relationship with their clients and to ensure that the Global Business Companies under their administration do not publish or cause to be published an advertisement which is unclear, false or misleading.

Yours faithfully,

Clairette Ah-Hen 

Chief Executive

Insight Report: Regulation in Global Banking

Prior to the economic downturn, financial services companies primarily employed high financial leverage to increase profitability. However, these companies have now been pressured to deleverage and seek alternative sources of profit by the changed economic picture, a rise in regulatory mediation, and competitive issues. In this altered environment, a new operating model is needed, one rooted in attaining the primary relationship – or at least one of the main relationships – with the customer, recreating trust, and forging active customer relationships. However, the global financial institutions continue to face numerous tests to bring stability back in the financial system and win customer trust.

Basel III regulations aim to overcome the shortcomings of the Basel II regime, which failed to effectively address risk exposures in the banking industry. The new regime proposes stricter capital and liquidity requirements for banks to ensure they remain resilient to financial shocks. It has also upgraded internal risk assessment processes and disclosure requirements to bring more transparency in banks’ functioning. However, given the weak condition of banks due to rising regulatory pressures, operating costs and falling profit margins in several key economies such as the US and members of the European Union (EU), the timing of implementation remains uncertain, with migration to minimum capital requirements already delayed until the end of 2018.

Scope

• This report provides an overview of the level of regulatory enforcement in the banking industry across various regions.
• It discusses key factors which drive governments and regulatory bodies to formulate and implement these regulations.
• It analyzes key operational and technological trends among banking institutions as a result of evolving regulatory dynamics and business environments.
• It discusses the current and future outlook of the retail banking industry and its product classes as a result of these regulations
• Outlines the market opportunities and challenges for retail banks due to changing regulatory landscape

Key highlights

Basel III is a comprehensive risk-based approach on capital adequacy and risk management for the banking industry, and aims to provide better protection to depositors and minimize firm failures. The project was initiated by the Basel Committee on Banking Supervision as an extension of the Basel II regulations to develop a revised set of capital-requirement and risk-management standards. Basel III is expected to enable banks to hold capital against market, credit and operational risks, and will consist of reform guidelines targeted at improving regulatory supervision and risk management for banks. 

In addition to Basel III reforms, regions such as America and Europe are registering significant shifts in their regional regulations. These regulatory changes are mostly in line with Basel III, but address domestic circumstances more effectively. In the US, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the Credit Card Accountability Responsibility and Disclosure Act, among others, are expected to push banks to pay attention to the quality of their capital, lending practices and consumer protection.

In Europe, which remains heavily in debt after the financial crisis of 2008 and the eurozone crisis, regulators have taken an aggressive stance. The 2013 banking regulations such as Capital Requirements Regulation (CRR) and revised Capital Requirements Directive (CRD 4), combined with the Liikanen proposal to ring-fence retail depositors’ funds, are expected to overhaul the banking industry in the region. On the other hand, the Asia-Pacific, Middle East and African regions show relatively low activity in bringing in new regulations compared to their Western counterparts.

Money laundering, terrorist financing and tax evasion are major ongoing issues faced by the banking industry, leading to various regulatory reforms worldwide. In the US, the Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 to address tax evasion by US citizens via foreign financial institutions and some non-foreign financial entities (NFFEs).

Table of contents

1 Executive Summary

2 Dynamics of Banking Regulations

2.1 Global Snapshot

2.2 Key Drivers of Changing Regulatory Landscape

3 Analysis of Emerging Banking Regulations

3.1 Global Development – Basel III

3.1.1 Basel III framework

3.1.2 Basel III capital requirement timeline

3.1.3 Comparative assessment of capital requirements under Basel II and Basel III

3.2 Regional Developments in the Americas

3.2.1 The Dodd-Frank Wall Street Reform and Consumer Protection Act, 2010

3.2.2 Credit Card Accountability Responsibility and Disclosure Act (Card Act) of 2009

3.2.3 FATCA and AML Regulations

3.2.4 Developments in Canada and Latin America

3.3 Regional Developments in Europe

3.3.1 Capital Requirements Regulation (CRR) and revised Capital Requirements Directive (CRD 4)

3.3.2 The Liikanen proposal and structural reforms

3.3.3 SEPA cards framework

3.3.4 The Payment Services Directive (PSD)

3.3.5 Financial crimes and tax evasions

3.3.6 Resolution planning and protecting customer assets

3.4 Regional Developments in Asia-Pacific

3.4.1 AML regulations

3.4.2 Financial crimes and tax evasion

3.4.3 Other key developments

3.5 Regional Developments in the Middle East and Africa

4 Emerging Trends and Challenges

4.1 Operational Trends

4.2 Technology Trends

4.3 Key Challenges

5 Impact Assessment on Business and Opportunities

5.1 Impact on Key Business Lines and Corporate Structure

5.1.1 Impact of products and services

5.1.2 Impact on corporate structure

5.2 Operational and Functional Opportunities

5.3 Mergers and Acquisitions

5.3.1 Global banking industry: M&A activity expectations

5.4 Recommended Actions

6 Appendix

6.1 Methodology

6.2 Contact Timetric

6.3 About Timetric

6.4 Timetric’s Services

6.5 Disclaimer

List of tables

Table 1: Examples of Punitive Actions by Regulators

Table 2: Treatment of New Capital Buffers

Table 3: Key Deductions and Adjustments in Calculation of Tier 1 Capital

Table 4: G-SIFIs Corresponding to their Additional Capital Requirement

Table 5: FATCA Regulations and Impacts

Table 6: US Accounts Held By Financial Institutions and Reporting Guidelines

Table 7: Exempted Offshore Institutions and Products

Table 8: AML Regulations Enacted or Amended in the US, 1970–2004

Table 9: Evolution of AML Regulations in the UK, 1993–2012

Table 10: Documentation Under KYC Process

Table 11: Basel II Implementation in Egypt

Table 12: Global AML Compliance Spending (US$ Million), 2008–2017

Table 13: Global Banking Industry: M&A Activity Expectations (%), 2013–2014

List of figures

Figure 1: Levels of Regulatory Pressure in Key Regions

Figure 2: Adoption of Basel III in Member Countries

Figure 3: The Basel III Framework

Figure 4: Basel III Timelines for Capital Requirements

Figure 5: Basel II vs. Basel III

Figure 6: Basel III Preparedness in America, March 2013

Figure 7: Completed and In-Process Agreements with Offshore Economies, February 2013

Figure 8: Basel III Preparedness in Europe, March 2013

Figure 9: Basel III Preparedness in Asia-Pacific, March 2013

Figure 10: Impact of AML Regulations on Financial Institutions in Hong Kong

Figure 11: Basel III Preparedness in Middle East and Africa, March 2013

Figure 12: AML Regulatory Developments, 2010–2013

Figure 13: Online Security Device

Figure 14: Expected Capital Charges Under Solvency II for Different Asset Classes

Figure 15: Global AML Compliance Spending (US$ Million), 2008–2017

Figure 16: Regulatory Impact on Key Business Lines and Structure

Figure 17: Transaction Costs for Financial Institutions

Figure 18: M&A and Insurance Firms

Figure 19: Global Banking Industry: M&A Activity Expectations (%), 2013–2014

Figure 20: Key Recommendations

The Insurance Industry in Mauritius, Key Trends and Opportunities to 2017

Mauritius is one of the most dynamic and fastest-growing economies in the sub-Saharan Africa region, and the country’s business environment and investment climate also made it one of the most business-friendly destinations in the region. Mauritius is ranked first in Sub-Sahara and 19th worldwide in terms of ease of doing business, according to the World Bank’s Doing Business 2013 report. It has also emerged as an important platform between Asia, the Middle East and Africa for investment into the African continent. The financial services sector, including the insurance industry, is an important economic pillar of the Mauritian economy. The insurance industry is governed by the Financial Service Commission (FSC) and grew at a stable rate during the 2008-2012 review period, supported by sustained demand for pension, motor and property insurance products. The healthcare category in Mauritius recorded fast growth, mainly driven by rising healthcare expenditure and an aging population.

Scope

This report provides a comprehensive analysis of the insurance industry in Mauritius:

• It provides historical values for Mauritian insurance industry for the report’s 2008-2012 review period and forecast figures for the 2012-2017 forecast period 
• It offers a detailed analysis of the key segments and sub-segments in the Mauritian insurance industry, along with forecasts until 2017
• It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, combined ratio, total assets, total investment income and retentions 
• It profiles the top insurance companies in Mauritius, and outlines the key regulations affecting them

Key Highlights

• The Mauritian insurance industry is one of the most developed in the sub-Saharan Africa region and grew at a CAGR of 9.8% during the review period 
• The Mauritian insurance industry was relatively unaffected by global uncertainty caused by the Eurozone debt crisis, and the industry’s total assets grew from MUR95.9 billion (US$3.2 billion) in 2011 to MUR105 billion (US$3.5 billion), registering a growth of 9.5% in 2012
• The Mauritian insurance industry is supervised and regulated by the Financial Services Commission (FSC), which is mainly responsible for licensing, regulating, monitoring and supervising activities in the non-banking financial services sector, including the insurance industry
• The industry is going through a phase of consolidation impacted by new insurance law
• The Mauritian insurance industry is concentrated, but still highly competitive. The industry comprises 12 general insurers and seven long-term insurance companies

Table of Contents

1 Executive Summary

2 Introduction

2.1 What is this Report About?

2.2 Definitions

2.3 Methodology

3 Mauritius Insurance Industry Overview

3.1 Mauritian Insurance Industry

3.2 Key Industry Trends and Drivers

3.3 Challenges

4 Industry Segmentation

4.1 Life Insurance

4.1.1 Individual life insurance

4.1.2 Individual pension insurance

4.1.3 Other insurance

4.2 Non-Life Insurance

4.2.1 Property insurance

4.2.2 Motor insurance

4.2.3 Liability insurance

4.2.4 Marine, aviation and transit insurance

4.3 Reinsurance

5 Governance, Risk and Compliance

5.1 Legislation Overview and Historical Evolution

5.2 Legislation Trends by Type of Insurance

5.2.1 Life insurance regulatory trends

5.2.2 Property insurance regulatory trends

5.2.3 Motor insurance regulatory trends

5.2.4 Marine, aviation and transit insurance regulatory trends

5.2.5 Personal accident and health insurance regulatory trends

5.3 Compulsory Insurance

5.3.1 Motor third-party liability insurance

5.3.2 Craft third-party liability insurance

5.3.3 Workmen's compensation insurance

5.4 Supervision and Control

5.4.1 International Association of Insurance Supervisors

5.4.2 Committee of Insurance, Securities and Non-Banking Financial Authorities

5.4.3 Financial Services Commission

5.5 Non-Admitted Insurance Regulatory Trends

5.5.1 Overview

5.5.2 Intermediaries

5.5.3 Market practices

5.5.4 Fines and penalties

5.6 Company Registration and Operations

5.6.1 Types of insurance organization

5.6.2 Establishing a local company

5.6.3 Foreign ownership

5.6.4 Types of license

5.6.5 Capital requirements

5.6.6 Solvency margins

5.6.7 Reserve requirements

5.6.8 Investment regulations

5.6.9 Statutory return requirements

5.6.10 Policy terms and conditions

5.7 Taxation

5.7.1 Corporate tax

5.7.2 VAT

5.7.3 Captives

5.8 Legal System

5.8.1 Introduction

5.8.2 Access to court

5.8.3 Alternative dispute resolution (ADR)

6 Competitive Landscape

6.1 Overview

6.2 Leading Companies

6.2.1 BAI Co (Mtius) Ltd - company overview

6.2.2 The State Insurance Company of Mauritius Ltd (Sicom) - company overview

6.2.3 Anglo-Mauritius Assurance Society Ltd - company overview

6.2.4 Mauritius Union Assurance (MUA) - company overview

6.2.5 Swan Insurance Company - company overview

7 Macroeconomic Indicators

7.1 Market Capitalization Trend - Stock Exchange of Mauritius

7.2 GDP at Constant Prices (US$)

7.3 GDP per Capita at Constant Prices (US$)

7.4 GDP at Current Prices (US$)

7.5 GDP per Capita at Current Prices (US$)

7.6 Construction Net Output at Current Prices (US$)

7.7 Construction Net Output at Current Prices as a Percentage of GDP

7.8 Healthcare Expenditure

7.9 Healthcare Expenditure as a Percentage of GDP

7.1 Healthcare Expenditure per Capita

7.11 Labor Force

7.12 Exports as a Percentage of GDP

7.13 Imports as a Percentage of GDP

7.14 Total Population

8 Appendix

8.1 Methodology

8.2 Contact Timetric

8.3 About Timetric

8.4 Timetric's Services

8.5 Disclaimer

List of Tables

Table 1: Insurance Industry Definitions 

Table 2: Mauritian Insurance Industry - Overall Written Premium by Segment (MUR Billion), 2008-2012 

Table 3: Mauritian Insurance Industry - Overall Written Premium by Segment (US$ Billion), 2008-2012 

Table 4: Mauritian Insurance Industry - Overall Written Premium by Segment (MUR Billion), 2012-2017 

Table 5: Mauritian Insurance Industry - Overall Written Premium by Segment (US$ Billion), 2012-2017 

Table 6: Mauritian Insurance Industry - Segmentation (% Share), 2008-2017 

Table 7: Mauritian Life Insurance - Written Premium by Category (MUR Billion), 2008-2012 

Table 8: Mauritian Life Insurance - Written Premium by Category (US$ Billion), 2008-2012 

Table 9: Mauritian Life Insurance - Written Premium by Category (MUR Billion), 2012-2017 

Table 10: Mauritian Life Insurance - Written Premium by Category (US$ Billion), 2012-2017 

Table 11: Mauritian Life Insurance - Paid Claims (MUR Billion), 2008-2012 

Table 12: Mauritian Life Insurance - Paid Claims (MUR Billion), 2012-2017 

Table 13: Mauritian Life Insurance - Incurred Loss (MUR Billion), 2008-2012 

Table 14: Mauritian Life Insurance - Incurred Loss (MUR Billion), 2012-2017 

Table 15: Mauritian Life Insurance - Loss Ratio (%), 2008-2012 

Table 16: Mauritian Life Insurance - Loss Ratio (%), 2012-2017 

Table 17: Mauritian Life Insurance - Combined Ratio (%), 2008-2012 

Table 18: Mauritian Life Insurance - Combined Ratio (%), 2012-2017 

Table 19: Mauritian Life Insurance - Total Assets (MUR Billion), 2008-2012 

Table 20: Mauritian Life Insurance - Total Assets (MUR Billion), 2012-2017 

Table 21: Mauritian Life Insurance - Total Investment Income (MUR Billion), 2008-2012 

Table 22: Mauritian Life Insurance - Total Investment Income (MUR Billion), 2012-2017 

Table 23: Mauritian Life Insurance - Retentions (MUR Billion), 2008-2012 

Table 24: Mauritian Life Insurance - Retentions (MUR Billion), 2012-2017 

Table 25: Mauritian Individual Life Insurance - Written Premium (MUR Billion), 2008-2012 

Table 26: Mauritian Individual Life Insurance - Written Premium (MUR Billion), 2012-2017 

Table 27: Mauritian Individual Pension Insurance - Written Premium (MUR Billion), 2008-2012 

Table 28: Mauritian Individual Pension Insurance - Written Premium (MUR Billion), 2012-2017 

Table 29: Mauritian Other Insurance - Written Premium (MUR Billion), 2008-2012 

Table 30: Mauritian Other Insurance - Written Premium (MUR Billion), 2012-2017 

Table 31: Mauritian Non-Life Insurance - Written Premium (MUR Billion), 2008-2012 

Table 32: Mauritian Non-Life Insurance - Written Premium (US$ Million), 2008-2012 

Table 33: Mauritian Non-Life Insurance - Written Premium by Category (MUR Billion), 2012-2017 

Table 34: Mauritian Non-Life Insurance - Written Premium by Category (US$ Million), 2012-2017 

Table 35: Mauritian Non-Life Insurance - Paid Claims (MUR Billion), 2008-2012 

Table 36: Mauritian Non-Life Insurance - Paid Claims (MUR Billion), 2012-2017 

Table 37: Mauritian Non-Life Insurance - Loss Ratio (%), 2008-2012 

Table 38: Mauritian Non-Life Insurance - Loss Ratio (%), 2012-2017 

Table 39: Mauritian Non-Life Insurance - Incurred Loss (MUR Billion), 2008-2012 

Table 40: Mauritian Non-Life Insurance - Incurred Loss (MUR Billion), 2012-2017 

Table 41: Mauritian Non-Life Insurance - Combined Ratio (%), 2008-2012 

Table 42: Mauritian Non-Life Insurance - Combined Ratio (%), 2012-2017 

Table 43: Mauritian Non-Life Insurance - Total Assets (MUR Billion), 2008-2012 

Table 44: Mauritian Non-Life Insurance - Total Assets (MUR Billion), 2012-2017 

Table 45: Mauritian Non-Life Insurance - Total Investment Income (MUR Billion), 2008-2012 

Table 46: Mauritian Non-Life Insurance - Total Investment Income (MUR Billion), 2012-2017 

Table 47: Mauritian Non-Life Insurance - Retentions (MUR Billion), 2008-2012 

Table 48: Mauritian Non-Life Insurance - Retentions (MUR Billion), 2012-2017 

Table 49: Mauritian Property Insurance - Written Premium (MUR Billion), 2008-2012 

Table 50: Mauritian Property Insurance - Written Premium (MUR Billion), 2012-2017 

Table 51: Mauritian Motor Insurance - Written Premium (MUR Billion), 2008-2012 

Table 52: Mauritian Motor Insurance - Written Premium (MUR Billion), 2012-2017 

Table 53: Mauritian Liability Insurance - Written Premium (MUR Billion), 2008-2012 

Table 54: Mauritian Liability Insurance - Written Premium (MUR Billion), 2012-2017 

Table 55: Mauritian Marine, Aviation and Transit Insurance - Written Premium (MUR Billion), 2008-2012 

Table 56: Mauritian Marine, Aviation and Transit Insurance - Written Premium (MUR Billion), 2012-2017 

Table 57: Mauritian Personal Accident and Health Insurance - Paid Claims (MUR Billion), 2008-2012 

Table 58: Mauritian Personal Accident and Health Insurance - Paid Claims (MUR Billion), 2012-2017 

Table 59: Mauritian Personal Accident and Health Insurance - Loss Ratio (%), 2008-2012 

Table 60: Mauritian Personal Accident and Health Insurance - Loss Ratio (%), 2012-2017 

Table 61: Mauritian Personal Accident and Health Insurance - Incurred Loss (MUR Billion), 2008-2012 

Table 62: Mauritian Personal Accident and Health Insurance - Incurred Loss (MUR Billion), 2012-2017 

Table 63: Mauritian Personal Accident and Health Insurance - Combined Ratio (%), 2008-2012 

Table 64: Mauritian Personal Accident and Health Insurance - Combined Ratio (%), 2012-2017 

Table 65: Mauritian Personal Accident and Health Insurance - Total Assets (MUR Billion), 2008-2012 

Table 66: Mauritian Personal Accident and Health Insurance - Total Assets (MUR Billion), 2012-2017 

Table 67: Mauritian Personal Accident and Health Insurance - Total Investment Income (MUR Billion), 2008-2012

Table 68: Mauritian Personal Accident and Health Insurance - Total Investment Income (MUR Billion), 2012-2017

Table 69: Mauritian Personal Accident and Health Insurance - Retentions (MUR Billion), 2008-2012 

Table 70: Mauritian Personal Accident and Health Insurance - Retentions (MUR Billion), 2012-2017 

Table 71: Mauritian Reinsurance Ceded by Insurance Segment (MUR Billion), 2008-2012 

Table 72: Mauritian Reinsurance Ceded by Insurance Segment (US$ Million), 2008-2012 

Table 73: Mauritian Reinsurance Ceded by Insurance Segment (MUR Billion), 2012-2017 

Table 74: Mauritian Reinsurance Ceded by Insurance Segment (US$ Million), 2012-2017 

Table 75: Mauritian Life Insurance - Percentage of Reinsurance Ceded (%), 2008-2012 

Table 76: Mauritian Life Insurance - Percentage of Reinsurance Ceded (%), 2012-2017 

Table 77: Mauritian Non-Life Insurance - Percentage of Reinsurance Ceded (%), 2008-2012 

Table 78: Mauritian Non-Life Insurance - Percentage of Reinsurance Ceded (%), 2012-2017 

Table 79: Mauritian Personal Accident and Health Insurance - Percentage of Reinsurance Ceded (%), 2008-2012 

Table 80: Mauritian Personal Accident and Health Insurance - Percentage of Reinsurance Ceded (%), 2012-2017 

Table 81: Mauritius - Capital Requirement for Captive Insurance Companies 

Table 82: Mauritius - Corporate Tax Rates for the Financial Year 2013 

Table 83: Mauritian Life Insurance - Segment Shares, 2010 and 2011 

Table 84: Mauritian Non-Life Insurance - Segment Shares, 2010 and 2011 

Table 85: BAI Co (Mtius) Ltd, Main Products 

Table 86: BAI Co (Mtius) Ltd, Key Employees 

Table 87: The State Insurance Company of Mauritius Ltd (Sicom), Main Products 

Table 88: The State Insurance Company of Mauritius Ltd (Sicom), Key Employees 

Table 89: Anglo-Mauritius Assurance Society Ltd, Main Products 

Table 90: Anglo-Mauritius Assurance Society Ltd, Key Employees 

Table 91: Mauritius Union General Insurance (MUA), Main Products 

Table 92: Mauritius Union General Insurance (MUA), Key Employees 

Table 93: Swan Insurance Company, Main Products 

Table 94: Swan Insurance Company, Key Employees 

List of Figures

Figure 1: Mauritian Insurance Industry - Overall Written Premium by Segment (MUR Billion), 2008-2017 

Figure 2: Mauritian Insurance Industry - Dynamics by Segment (%), 2008-2017 

Figure 3: Mauritian Life Insurance - Written Premium by Category (MUR Billion), 2008-2017 

Figure 4: Mauritian Life Insurance - Paid Claims (MUR Billion), 2008-2012 

Figure 5: Mauritian Life Insurance - Paid Claims (MUR Billion), 2012-2017 

Figure 6: Mauritian Life Insurance - Incurred Loss (MUR Billion), 2008-2012 

Figure 7: Mauritian Life Insurance - Incurred Loss (MUR Billion), 2012-2017 

Figure 8: Mauritian Life Insurance - Loss Ratio (%), 2008-2012 

Figure 9: Mauritian Life Insurance - Loss Ratio (%), 2012-2017 

Figure 10: Mauritian Life Insurance - Combined Ratio (%), 2008-2012 

Figure 11: Mauritian Life Insurance - Combined Ratio (%), 2012-2017 

Figure 12: Mauritian Life Insurance - Total Assets (MUR Billion), 2008-2012 

Figure 13: Mauritian Life Insurance - Total Assets (MUR Billion), 2012-2017 

Figure 14: Mauritian Life Insurance - Total Investment Income (MUR Billion), 2008-2012 

Figure 15: Mauritian Life Insurance - Total Investment Income (MUR Billion), 2012-2017 

Figure 16: Mauritian Life Insurance - Retentions (MUR Billion), 2008-2012 

Figure 17: Mauritian Life Insurance - Retentions (MUR Billion), 2012-2017 

Figure 18: Mauritian Life Insurance - Penetration (%), 2008-2012 

Figure 19: Mauritian Life Insurance - Premium Per Capita (MUR), 2008-2012 

Figure 20: Mauritian Individual Life Insurance - Written Premium (MUR Billion), 2008-2012 

Figure 21: Mauritian Individual Life Insurance - Written Premium (MUR Billion), 2012-2017 

Figure 22: Mauritian Individual Pension Insurance - Written Premium (MUR Billion), 2008-2012 

Figure 23: Mauritian Individual Pension Insurance - Written Premium (MUR Billion), 2012-2017 

Figure 24: Mauritian Other Insurance - Written Premium (MUR Billion), 2008-2012 

Figure 25: Mauritian Other Insurance - Written Premium (MUR Billion), 2012-2017 

Figure 26: Mauritian Non-Life Insurance - Written Premium by Category (MUR Billion), 2008-2017 

Figure 27: Mauritian Non-Life Insurance - Written Premium by Category (% Share), 2012 and 2017 

Figure 28: Mauritian Non-Life Insurance - Dynamics by Category (%), 2008-2017 

Figure 29: Mauritian Non-Life Insurance - Paid Claims (MUR Billion), 2008-2012 

Figure 30: Mauritian Non-Life Insurance - Paid Claims (MUR Billion), 2012-2017 

Figure 31: Mauritian Non-Life Insurance - Loss Ratio (%), 2008-2012 

Figure 32: Mauritian Non-Life Insurance - Loss Ratio (%), 2012-2017 

Figure 33: Mauritian Non-Life Insurance - Incurred Loss (MUR Billion), 2008-2012 

Figure 34: Mauritian Non-Life Insurance - Incurred Loss (MUR Billion), 2012-2017 

Figure 35: Mauritian Non-Life Insurance - Combined Ratio (%), 2008-2012 

Figure 36: Mauritian Non-Life Insurance - Combined Ratio (%), 2012-2017 

Figure 37: Mauritian Non-Life Insurance - Total Assets (MUR Billion), 2008-2012 

Figure 38: Mauritian Non-Life Insurance - Total Assets (MUR Billion), 2012-2017 

Figure 39: Mauritian Non-Life Insurance - Total Investment Income (MUR Billion), 2008-2012 

Figure 40: Mauritian Non-Life Insurance - Total Investment Income (MUR Billion), 2012-2017 

Figure 41: Mauritian Non-Life Insurance - Retentions (MUR Billion), 2008-2012 

Figure 42: Mauritian Non-Life Insurance - Retentions (MUR Billion), 2012-2017 

Figure 43: Mauritian Non-Life Insurance - Penetration (%), 2008-2012 

Figure 44: Mauritian Non-Life Insurance - Premium Per Capita (MUR), 2008-2012 

Figure 45: Mauritian Property Insurance - Written Premium (MUR Billion), 2008-2012 

Figure 46: Mauritian Property Insurance - Written Premium (MUR Billion), 2012-2017 

Figure 47: Mauritian Motor Insurance - Written Premium (MUR Billion), 2008-2012 

Figure 48: Mauritian Motor Insurance - Written Premium (MUR Billion), 2012-2017 

Figure 49: Mauritian Liability Insurance - Written Premium (MUR Billion), 2008-2012 

Figure 50: Mauritian Liability Insurance - Written Premium (MUR Billion), 2012-2017 

Figure 51: Mauritian Marine, Aviation and Transit Insurance - Written Premium (MUR Billion), 2008-2012 

Figure 52: Mauritian Marine, Aviation and Transit Insurance - Written Premium (MUR Billion), 2012-2017 

Figure 53: Mauritian Personal Accident and Health Insurance - Paid Claims (MUR Billion), 2008-2012 

Figure 54: Mauritian Personal Accident and Health Insurance - Paid Claims (MUR Billion), 2012-2017 

Figure 55: Mauritian Personal Accident and Health Insurance - Loss Ratio (%), 2008-2012 

Figure 56: Mauritian Personal Accident and Health Insurance - Loss Ratio (%), 2012-2017 

Figure 57: Mauritian Personal Accident and Health Insurance - Incurred Loss (MUR Billion), 2008-2012 

Figure 58: Mauritian Personal Accident and Health Insurance - Incurred Loss (MUR Billion), 2012-2017 

Figure 59: Mauritian Personal Accident and Health Insurance - Combined Ratio (%), 2008-2012 

Figure 60: Mauritian Personal Accident and Health Insurance - Combined Ratio (%), 2012-2017 

Figure 61: Mauritian Personal Accident and Health Insurance - Total Assets (MUR Billion), 2008-2012 

Figure 62: Mauritian Personal Accident and Health Insurance - Total Assets (MUR Billion), 2012-2017 

Figure 63: Mauritian Personal Accident and Health Insurance - Total Investment Income (MUR Billion), 2008-2012 

Figure 64: Mauritian Personal Accident and Health Insurance - Total Investment Income (MUR Billion), 2012-2017 

Figure 65: Mauritian Personal Accident and Health Insurance - Retentions (MUR Billion), 2008-2012 

Figure 66: Mauritian Personal Accident and Health Insurance - Retentions (MUR Billion), 2012-2017 

Figure 67: Mauritian Personal Accident and Health Insurance - Penetration (%), 2008-2012 

Figure 68: Mauritian Personal Accident and Health Insurance - Premium Per Capita (MUR), 2008-2012 

Figure 69: Mauritian Reinsurance Ceded by Insurance Segment (MUR Billion), 2008-2017 

Figure 70: Mauritian Reinsurance - Dynamics by Insurance Segment (%), 2008-2017 

Figure 71: Mauritian Life Insurance - Percentage of Reinsurance Ceded (%), 2008-2012 

Figure 72: Mauritian Life Insurance - Percentage of Reinsurance Ceded (%), 2012-2017 

Figure 73: Mauritian Non-Life Insurance - Percentage of Reinsurance Ceded (%), 2008-2012 

Figure 74: Mauritian Non-Life Insurance - Percentage of Reinsurance Ceded (%), 2012-2017 

Figure 75: Mauritian Personal Accident and Health Insurance - Percentage of Reinsurance Ceded (%), 2008-2012 

Figure 76: Mauritian Personal Accident and Health Insurance - Percentage of Reinsurance Ceded (%), 2012-2017 

Figure 77: Mauritius - Insurance Regulatory Framework 

Figure 78: Mauritius - Insurance Supervision at Various Levels 

Figure 79: Mauritius - Insurance Regulatory Framework for Company Registration and Operation 

Figure 80: Mauritian Life Insurance - Segment Shares, 2010 and 2011 

Figure 81: Mauritian Non-Life Insurance - Segment Shares, 2010 and 2011 

Figure 82: Mauritian Stock Exchange Market Capitalization (US$ Billion), 2007-2011 

Figure 83: Mauritian GDP at Constant Prices (US$ Billion), 2007-2011 

Figure 84: Mauritian GDP per Capita at Constant Prices (US$), 2007-2011 

Figure 85: Mauritian GDP at Current Prices (US$ Billion), 2007-2011 

Figure 86: Mauritian GDP per Capita at Current Prices (US$), 2007-2011 

Figure 87: Mauritian Construction Net Output at Current Prices (US$ Billion), 2007-2011 

Figure 88: Mauritian Construction Output at Current Prices as a Percentage of GDP (%), 2007-2011 

Figure 89: Mauritian Healthcare Expenditure (US$ Billion), 2007-2011 

Figure 90: Mauritian Healthcare Expenditure as a Percentage of GDP (%), 2007-2011 

Figure 91: Mauritian per Capita Healthcare Expenditure (US$), 2007-2011 

Figure 92: Mauritian Size of Labor Force in 15-59 Age Group (Million), 2007-2011 

Figure 93: Mauritian Exports as a Percentage of GDP (%), 2007-2011 

Figure 94: Mauritian Imports as a Percentage of GDP (%), 2007-2011 

Figure 95: Mauritian Total Population (Million), 2007-2011 

IMF: Southern and Eastern African Central Bank Officials Discuss the Mobile Financial Services Business and its Regulation

Central bank officials from across Southern and Eastern Africa and international experts discussed various aspects of the mobile financial services (MFS) and shared experiences on regulation of this fastly growing business in the region at the seminar on Mobile Financial Services: the Business and Regulation held this week in Mauritius. The event was organized jointly by the International Monetary Fund’s (IMF) Africa Regional Technical Assistance Center for Southern Africa–– AFRITAC South (AFS) and Africa Regional Technical Assistance Center for Eastern Africa—East AFRITAC (AFE).

The seminar was motivated by the rapid growth in MFS, its potential to enhance financial inclusion, as well as significant regulatory challenges. It was led by a team comprising experts from the IMF, the World Bank, the Reserve Bank of India, South African Reserve Bank, and the Africa Mobile Financial Services Policy Initiative (AMPI) of the Alliance for Financial Inclusion.

Participants from Ethiopia, Mauritius, Rwanda, South Africa, Tanzania, and Zambia made presentations on the current state of the MFS business and the regulatory/oversight framework in their respective countries. Building on country presentations, the experts discussed with the participants business models used by the MFS providers, payment system issues, emerging risks generated by the growing scale of the MFS business, and the need for the appropriately tailored regulation and oversight of MFS, including provisions relating to anti-money laundering and combating financing of terrorism.

The regulatory and oversight framework for MFS is still developing. Mr. Googoolye, First Deputy Governor of the Bank of Mauritius, emphasized that in developing this framework it is important to take a comprehensive approach to regulating MFS and involve all the relevant stakeholders in the process. During the discussions of the optimal regulatory architecture, AMPI participants stressed the importance of balancing financial stability and integrity considerations with the need to foster MFS industry growth and financial inclusion of the unbanked population.

At the conclusion of the seminar, Mr. Kramarenko (AFS Coordinator) and Mr. Singh (AFE Coordinator) indicated that the seminar raised the awareness of the importance of cross-sectoral (that is, payment system oversight and banking supervision) and cross-border supervisory cooperation, which is vital for the achievement of safe and sound financial inclusion through MFS. They added that going forward AFS and AFE would facilitate peer-to-peer exchanges and provide further technical assistance to their member countries in the area of mobile banking, including on agency banking supervision.

Thirty-eight central bank officials attended from 19 AFS and AFE member countries: Angola, Botswana, Comoros, Eritrea, Ethiopia, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, South Africa, Tanzania, Uganda, Swaziland, Zambia, and Zimbabwe.

STEP: OECD unveils global automatic reporting standard

The Organisation for Economic Cooperation and Development (OECD) has published its proposed global standard for the automatic exchange of information between tax authorities worldwide.

The document closely follows the agreements negotiated between the US and other governments in the last two years for the implementation of the US Foreign Account Tax Compliance Act (FATCA). The principal difference is that the OECD procedures do not contain any US-specific references, since they are intended for information exchange between any two countries. Also, they are couched in terms of the tax residence of individuals, not their citizenship as in the FATCA agreements.

The OECD standard is expected to be adopted by most or all of the G20 jurisdictions and several other financial centres – more than 40 in all. It sets out procedures for each government to collect information from domestic financial institutions and automatically pass it to other signatory jurisdictions every year. The protocol describes the financial information to be exchanged; the institutions that will have to report it; the various types of reportable accounts and taxpayers covered; and the due diligence procedures to be followed by financial institutions.

The common reporting system has been designed with to be very wide scope to eliminate the kind of circumventions that have plagued the EU Savings Directive. It covers all types of investment income, including interest, dividends, insurance policy pay-outs and similar income, but also account balances and the proceeds of selling assets.

Banks are not the only institutions that will have to report. Other covered institutions include brokers, collective investment vehicles and insurance companies. They will have to report all accounts held by individuals, companies and other entities including trusts and foundations. The determinants of whether a trust is a reporting institution or is reported on is much as in the FATCA Model 1-type Intergovernmental Agreements. Reporting institutions will be required to 'look through' entities such as shell companies and trusts and report on the individuals that ultimately control these entities.

The standard includes specific rules on the confidentiality of the information exchanged. Where these standards are not met, countries will be entitled to refuse to exchange information automatically.

As for FATCA, each jurisdiction will have some scope to exempt certain types of low-risk financial institutions from the reporting requirements. The UK's tax authority has already said it will be seeking to use domestic legislation to exclude certain financial products, in particular UK-registered pension schemes. Practitioners might find it helpful to be able to point to a published government intention when providing updates or assurance to clients, said a HM Revenue and Custom’s spokesperson. However the reporting status of express trusts is not yet clear.

The final common standard is expected to be ready in time for the September meeting of G20 Finance Ministers. No timetable has been set for adoption, as jurisdictions that adopt will have to make significant amendments to their domestic law.