Minimum Capital Requirements for Establishing an IIIO
Setting up an International Insurance Intermediary Office (IIIO) requires serious financial commitment. The amount varies depending on the type of broker and the infrastructure you choose to deploy. This article aims to guide you through the various categories and associated costs required for this process.
Capital Requirements for Incorporated IIIOs
Incorporation brings autonomy, and with it, a larger set of financial responsibilities. If you decide to establish your IIIO as an incorporated entity, your minimum capital requirement will be considerably higher.
Direct Insurance Broker
Starting an IIIO as a Direct Insurance Broker in an incorporated form comes with a minimum capital requirement of 100,000 USD. This is the essential financial commitment needed to kickstart your operations.
Reinsurance Broker
The stakes rise further if you take the plunge into the Reinsurance Broker setting. In this case, the minimum capital requirement to set up an incorporated Reinsurance Broker IIIO is 550,000 USD.
Composite Insurance Broker
The most complex and capital-intensive IIIO setup is as a Composite Insurance Broker. The requisite capital to initiate the establishment of a Composite Insurance Broker IIIO is 675,000 USD.
Capital Requirements for Unincorporated IIIOs
On the other hand, if you plan to operate as a branch and engage as an unincorporated entity, the capital requirements are significantly reduced.
Direct Insurance Broker
For those opting to set up a Direct Insurance Broker IIIO as an unincorporated entity, the capital requirement is just 10,000 USD – a mere fraction of the incorporated equivalent.
Reinsurance Broker
An unincorporated Reinsurance Broker IIIO requires an investment of 55,000 USD. This, again, is far less than the incorporated form capital demand.
Composite Insurance Broker
Lastly, if you intend to set up a Composite Insurance Broker IIIO in unincorporated form, your investment should be at least 67,500 USD.
As you plan to embark on the IIIO journey, balance your financial capabilities with your business aspirations to settle on the best structure. Whether incorporated or unincorporated, being a Direct Insurance, Reinsurance, or Composite Insurance Broker, each requires a different level of financial commitment.
