Panama's Ministry of Commerce & Industry through its Superintendant of Insurance regulates and licenses Panama
Insurance companies under the Law 59 of 1996.
Starting a licensed insurance company in Panama can be
accomplished with a formal application.
Required documents to apply for a Panama Insurance Company
license are the following:
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 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, 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
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
dollars USA (2,000.00) to cover investigation expenses of the
10. Submit any other requisite established by the Law,
regulations, or Superintendent of Insurance.
In addition to submission of the above-mentioned documents,
insurance company must be able to establish a minimum cash
capital of $2 Million USD (Two Million U.S. Dollars). Branches
of foreign company in addition to establishing of the minimum
cash capital must adhere to the provisions of 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.