The insurance sector, as an industry, is regarded as a slow-growing, safe sector for investors and this is still generally true when compared to other financial sectors. An insurance company isn't as exciting as the Silicon Valley but is good for the individual investor.
The insurance industry has stability, because they plan for the future and consider every eventuality and is easy to evaluate financially. They have money in reserve, it is a conservative business and takes care not to waste investors’ money. The Cyprus insurance sector has dynamic growth and has fully adapted to the regulatory environment in Europe.
Cyprus is a small country thus the insurance market in Cyprus is small but despite this the country offers to international insurance firms many opportunities as a cost-effective and business-friendly base to launch and manage products, services and operations in both the domestic and in international markets. The insurance industry manages assets well over €2 billion, making it one of the largest institutional investors in Cyprus. The country aims to become a centre for insurance management and reinsurance activities, encouraging companies seeking to enter the EU and the wider Middle East region to choose Cyprus as their regional headquarters to benefit from the easy market access and the services of a vast reservoir of experience and large number of qualified insurance professionals.
This industry is attractive to EU and non-EU based insurance companies and managers. In order to carry out business in Cyprus a domestic insurance company requires a licence under articles 18 to 22 of the Insurance Law. Third country insurers are licensed under articles 25 and 26 of the Law. Cyprus is becoming a serious contender as a location of choice for cross-border insurance operations because of the strong network of double tax agreements, the absence of tax on capital gains, and the participation exemption for dividends without heavy conditions and without any thin capitalization rules. Already several foreign insurance operators have been successfully established in Cyprus for years and also Cypriot insurance firms are partnerships with international giants.