Belize provides reliable property and home insurance policies backed by North American insurers. Reliable flight insurance plans as well as medical evacuation plans are also offered by Belize’s insurance providers.
This report offers comprehensive analysis, market insight, and key data regarding Belize’s life and non-life (property & casualty) insurance markets. It details economic factors as well as local political dynamics; with specific attention given to climate, operational, and security risks.
Size
Belize’s insurance industry is relatively modest. A handful of insurance companies operate within its borders, providing coverage options such as home, auto, and health. Most are local insurers; however, a few international firms also participate in its market.
Belize’s government has implemented several reforms to enhance the business environment and attract FDI. Belize boasts a low corporate tax rate of 14% and liberal labor market policies. Furthermore, its strong financial sector supports an expanding stock market; furthermore, government initiatives aim to strengthen anti-money laundering regimes for greater economic security.
Even with these positive changes, foreign investors remain cautious about investing in the Belizean economy. However, due to its strategic location and developing infrastructure, Belize offers investors numerous investment opportunities in sectors like telecoms, tourism, and renewable energy industries. Furthermore, the government is working on improving the investment climate by reducing regulatory burdens.
Belize’s state-run health system, the Social Security Board (SSB), serves all citizens and permanent residents eligible to use its services, funded through contributions made towards social security contributions. SSB offers primary care as well as hospitalization; however, dental care coverage is excluded.
Belize’s public hospitals are well-equipped, but expats often choose international private medical insurance for greater flexibility when selecting healthcare providers and treatments. Premiums for this type of policy may differ significantly between plans; so it is wise to research and compare carefully.
Medical and emergency evacuation coverage is an absolute must when traveling to Belize, protecting you against high out-of-pocket costs if you need to fly back home for treatment. Furthermore, trip cancellation and rescheduling insurance provide reimbursement if an unexpected event arises and necessitates altering or postponing your travel plans – this upgrade often comes cheaply with significant returns if you purchased non-refundable flights or made a substantial deposit payment on a hotel stay.
Major Insurance Players
Belize’s insurance industry is dominated by five domestic life insurers who hold an overall market share of over 80% despite its small population and limited financial sector development.
The Government of Belize (GoB) has made significant efforts to enhance the competitiveness of Belize’s local economy, with GDP growing 9.8 percent last year as it slowly recovered from the COVID-19 pandemic effects. Unfortunately, Belize’s small economy remains vulnerable to regional and global fluctuations; furthermore, it lags behind other countries in terms of ease of doing business and corruption issues.
Although Belize welcomes foreign investment and actively pursues it, investors often report poor administration of incentives, land titles being difficult to secure and bureaucratic delays making starting up business a challenging proposition. Furthermore, concerns exist that Government requirements requiring small and tour operator businesses to have 51 percent local ownership may impede growth and transparency.
Recently, the GoB has taken several measures to address investor concerns and strengthen its financial system, such as creating a national payment system, improving supervision of financial sectors, and introducing measures against money laundering and terrorist financing. They have also revised bilateral agreements with major international creditors as well as adopted laws protecting foreign investments. Furthermore, funds have been set aside specifically for responding to natural disasters or climate change impacts.
International insurance companies operating in Belize must meet a variety of regulations. To be compliant, international insurers must maintain at least $100,000 Belize dollars paid-up capital and pay an annual license fee. They are also required to maintain records at either their registered office in Belize or another location approved by the supervisor while maintaining at least one board member or director who resides permanently and is a citizen of Belize; finally, they must provide the supervisor with a list of their shareholders and directors.
The Regulatory Framework
Belize recognizes the value of creating an effective non-bank financial services sector to maintain economic stability, so has put into effect a regulatory framework that balances competing forces while meeting insurance company interests. This process is managed through the Office of Supervisor of Insurance and Private Pension, Ministry of Finance and Financial Services Commission (FSC).
Belize’s regulatory framework encompasses an application and licensing process for companies seeking to operate as insurance or reinsurance providers, though this process can still take some time. Once granted, companies can start operations; however, they must abide by minimum capital requirements as well as international investment regulations.
Belize’s regulatory framework focuses on protecting investors, which it does by limiting exposure to foreign currency risk and implementing a capital controls regime requiring specific approval from the Central Bank before any outward investments can take place.
Additionally, the government has implemented a financial supervision system that monitors domestic and foreign insurers. Its legal bases include the Securities Act, Exchange Control Act, Deposit Guarantee Act and Money Laundering Prevention Act.
Belize’s insurance industry is highly competitive. Twelve insurance companies currently operate within its borders and each offers an array of products, such as life and property insurance; motor, general and reinsurance policies; marine, aviation and transit cover as well as personal accident and health policies.
Belize’s economy has experienced steady expansion over the past decade, driven primarily by agriculture and tourism. Belize is famed for its stunning natural beauty and biodiversity – home to beaches, rainforests, and coral reefs – which its economic diversification policy has helped foster. Furthermore, government support for projects related to marine protection/management/sustainable fishing/agriculture/mangrove restoration/conservation is apparent through their investments.
Insurance Regulations
Belize’s government has implemented various safeguards to ensure the security and stability of their insurance industry, including passing an International Insurance Act in 1999 to simplify acquiring an insurance license in Belize. Furthermore, this act has made Belize an attractive location for businesses expanding into international insurance.
The Philippines insurance industry is overseen by three entities – Ministry of Finance (MoF), Office of Supervisor of Insurance and Private Pensions, and Financial Services Commission. MoF regulates domestic insurance while OSIPP licenses insurers for on- and off-site supervision; FSC oversees international coverage while both OSIPP and FSC regulate brokers as well as conducting inspections to investigate complaints against insurers.
MoF has also passed laws to ensure domestic insurance providers have sufficient capital. According to these laws, long-term and general insurers and reinsurers must maintain at least $100,000 in share capital; additionally, they must appoint a registered agent in Belize and submit annual audited accounts.
The Ministry of Finance (MoF) has also established the Deposit Insurance Corporation to safeguard deposits held at local banks and credit unions. Funding will come from initial contributions by the Central Bank of Belize as well as annual deposit premiums paid by depositors; management will consist of an Executive Director reporting regularly to Parliament.
Before traveling to Belize, it’s advisable to purchase an affordable travel insurance plan. There are various plans available, covering lost luggage or rental car damage; in fact, some travelers may even find that their credit cards provide complimentary coverage as part of the benefits. Before purchasing such coverage though, be sure to verify if it will apply in Belize as not all policies can cover all countries at once; some policies even exclude travel to countries with high crime rates altogether.
