How to Start a Panama Insurance Company - International Relocation Firm

How to Start a Panama Insurance Company


Panama Insurance Company

Starting a licensed insurance company in Panama can be accomplished with a formal application to the government agency in charge of Panama Insurance Companies.

Panama’s Ministry of Commerce & Industry through its Superintendant of Insurance regulates and licenses Panama Insurance companies under Law 59 of 1996.

Here are the required documents to apply for a Panama Insurance Company license with the Superintendent of Insurance:

1. Power of Attorney and a License Application presented by the authorized agent for the Panama insurance company.

2. A copy of the Partnership Agreement (or Articles of Incorporation if a corporation) which must contain the name, objectives, directors, officers, legal representatives, domicile, authorized capital, issuance of nominative shares, resident agent, subscribers, and a description of the activities to be engaged in by the requesting company.

In the event this is a foreign company, the document authorizing the establishment of the branch in the Republic of Panama must be certified by a diplomatic or consular officer of the original country in Panama.  If said documents are issued in a language other than Spanish, they must be submitted duly translated into Spanish by a certified public translator.

3. A certification from company stockholders or partners, signed by its Secretary or Treasurer; if the stockholders or partners are natural persons, owners of the stock or social quotas.

In the event of new companies, the certification must be signed by the license applicant.

4. The composition of the Board of Directors, with their respective curriculums and letters of reference.

5. In case of a foreign company branch, a certificate from the corresponding controlling authority of the native country proving that the head office is duly established in said country and that in compliance with its laws it has been operating there with full solvency during a minimum of five years.  Additionally, it must submit a certification that it has been duly authorized to operate a branch in the Republic of Panama, in the same fields operating in the native country.

6. Submit policy and insurance plans, actuarial technical notes sustaining the tariffs of every insurance branch to be operated, life insurance guaranteed securities, and description of the procedures for calculation of the mathematical reserve, and any other element related to the products to be sold by the company.

7. Identify the reinsurance program with which the company initiates operations.

8.  Submit a feasibility study which includes a market analysis and projects the objectives of the applicant company in the short, medium and long term.

9. Submit a certified check in the amount of two thousand Balboas (B/.2,000.00) to cover the investigation expenses of the petitioner.

10. Submit any other requisite established by the Law, the regulations, or the Superintendent of Insurance.

In addition to the submission of the above-mentioned documents, the insurance company must be able to establish a minimum cash capital of $2 Million USD (Two Million U.S. Dollars).  Branches of a foreign company in addition to establishing the minimum cash capital must adhere to the provisions of the Insurance Technical Council who has the authority to revise the minimum capital requirement every five years.  The minimum paid in capital must always be maintained free of liens, in order to guarantee the fulfillment of its obligations.

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