To identify the territory(s) of regulation and tax of reinsurance, consider the location of the reinsured’s business establishment(s)
The risk location is the territory in which the reinsured is established.
If the contract covers more than one reinsured, each individually may create a risk location.
Please note: the location of the original insured(s) does not determine the risk location.
The risk location is the territory in which the retrocedant is established.
If the contract covers more than one retrocedant, each individually may create a risk location.
Please note: the location of the original reinsured(s) or insured(s) does not determine the risk location.
Definition of 'business establishment'
European Union (EU) legislation defines the term ‘establishment’. Outside the EU the term is not so well defined, so in the absence of any contradictory guidance, it is appropriate to follow the EU approach.
Examples of business establishments:
- subsidiary companies
- branches of companies
- representative offices
- offices managed by businesses’ own staff
- tied selling agents
- factories and workshops
- mines and quarries
- oil and gas wells
- drilling platforms fixed to sea bed
Risk locator tool
Introduction to Risk LocationWhat is risk location and why is it important ?
Introduction to risk location
Establishing the risk location
To help establish risk location please consider the questions provided via the link below
Class of business guidance
To help you establish the risk location please consider the class of business
Risk Location Examples
The interaction of different territorial rules can make a given scenario complex. Applying the principles set out will assist market participants in establishing the risk location.
Get more from Crystal
Register for a free Crystal/Risk Locator account and benefit from:
- Access to premium content
- Risk location guidance
- Regular updates on regulatory and fiscal requirements via Lloyd's Regulatory Communications newsletter
- Access to Crystal Assist, an online tutorial that provides an introduction to Lloyd's licences and regulatory and fiscal requirements (CII CPD Accredited Event - 20pts)
- Ability to save your favourite searches
- For guidance on how to use Crystal access the Crystal Demo