The Cyprus insurance sector has proven highly resilient, demonstrating remarkable growth despite the challenges of more rigorous regulation and a volatile economy. The local insurance industry comprises 33 insurance companies while over 500 European insurance companies exercised their right of freedom to provide services (FOS). These represent a group of the largest institutional investors on the island with assets under management of over €2.5 billion (2019).
Cyprus, is an attractive jurisdiction for insurance companies as it does for the entire financial services sector. The main advantages that the island offers are:
- A particularly well positioned location to achieve expansion of operations in the European Union, North Africa and the Middle East
- Sound regulatory framework aligned with EU Regulations and Directives
- Full compliance with international financial reporting standards for insurance contracts
- Transparent and straightforward application process to set up operations in Cyprus
- Insurance companies from EU member states can operate in Cyprus under the freedom to provide services (FOS)
- Solvency II Directive has been transposed into local law representing the largest change to European regulations
- Cost-effective and business friendly base to launch new products and services
- Vast pool of professionals in the insurance sector
- Attractive corporate taxation 12.5%
- Full exemption from taxation on profits from disposal on securities
