Captive association believes this will enhance Guernsey’s attractiveness as a domicile
Guernsey’s financial authorities have no plans for the island to seek equivalence under Solvency II it has been announced.
The Guernsey government and the financial regulator (Guernsey Financial Services Commission) released a joint statement outlining their current position regarding the regulation of the island’s insurance sector and in particular in relation to the EU’s proposed Solvency II framework.
Read the full statement here.
Peter Niven, chief executive of Guernsey Finance – the promotional agency for the Island’s finance industry, said: “Guernsey is the largest captive insurance domicile in the European region but of course we lie outside the EU and as such, we cannot adopt its Directives but can seek equivalence.
“We have carried out a thorough evaluation of Solvency II and believe that, as things stand at the moment, seeking equivalence would not be right for our insurance market which is a world leader in captive insurance.
“Indeed, the treatment of captives under Solvency II remains uncertain and so we will be keeping a close eye on this and Solvency II as a whole to assess progress and how it might impact our market in the future. Guernsey remains committed to meeting internationally accepted regulatory standards as set by the IAIS and endorsed by the G20, including the latest developments on risk based solvency.”
chairman of the Guernsey International Insurance Association Dominic Wheatley added that his members were happy that the position has been clarified. “This puts an end to speculation on the subject and gives certainty to those involved in or looking to be involved in the Guernsey international insurance industry.
“We believe that the position the Island has adopted will enhance Guernsey’s attractiveness as a domicile to captive owners and other niche insurers looking for a regulatory environment that responds to the smaller scales of business and simpler business models typical of their businesses,” continued Wheatley.
Guernsey has an international insurance industry with 675 international insurance entities, comprising 341 international insurers (pure captives, PCCs, ICCs and ICC cells) and 334 PCC cells with combined gross assets of Ã‚Â£23.4bn, a net worth of Â£8.1bn and writing Ã‚Â£3.4bn in premiums.