CAPTIVES 343 insurers, 327 PCC cells and eight ICC cells
CAPTIVE PREMIUM £3.3bn (€3.84bn) as at 31 December 2008
LEGISLATION the Insurance Business (Bailiwick of Guernsey) Law, 2002; the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002
CAPTIVE TAX RATE 0%
FEES application fee of £4,370 for captive or cell company, or £1,230 for cell of PCC or ICC, followed by annual fee of £4,370 and £1,430, respectively
REGULATOR Guernsey Financial Services Commission
As the largest European captive domicile and as the first to introduce protected cell legislation, in 1997, Guernsey claims to “retains its worldwide prominence due to the experience of the insurance managers and [for cells] the fact that regulation, is at a cellular level, which offers additional security to cell owners”.
As one industry insider says: “Guernsey maintains its pre-eminent position. It has all of the legislative framework, including cells, but it does have more competition now. “Expansion tends to be of existing captives rather than the formation of new vehicles. We want to be able to sweat the cash.
We are looking for innovative ways to do that and Guernsey has the people with experience and knowledge of the market to achieve that. People will work with you to generate a solution. There are enough grey-haired people in Guernsey who have lived through many market cycles and know how it works.”
Guernsey’s other key benefits remain its accessibility – a short plane ride from the south of England – English as the native language, and being in the same time zone as the UK.
The elephant in the room is Solvency II, however. Although not subject to the regulation, the authorities are keeping a close eye.
Generally speaking, it has been summed up as ‘something we are watching from afar’, rather than an issue expected to change the existing regime.