Guernsey's insurance industry is renowned for its innovation and professionalism in providing a range of risk management solutions.
Solutions in Guernsey can be found for a wide variety of risks. These include: credit insurance; professional indemnity insurance; reinsurance; transformer cell; employers'/public liability insurance; material damage/business interruption insurance; motor insurance; property damage and business interruption insurance; transport insurance; life insurance/health insurance; kidnap & ransom insurance.
Centre of excellence in risk management
The industry comprises captive and commercial insurers using flexible vehicles such as protected cell companies (PCCs) and incorporated cell companies (ICCs) to write a huge variety of business.
At the end of December 2015 Guernsey was home to 804 international insurance entities. The 804 international insurers comprise 242 companies, 64 PCCs, 444 PCC cells, 13 ICCs and 41 ICC cells.
Big name managers
Guernsey plays host to subsidiaries of major risk management companies such as Aon, Artex, AJ Gallagher, Barbican, Generali, Hiscox, JLT, Marsh, Old Mutual, Price Bailey, RSA, Willis Towers Watson and XL Catlin. Independent operators include Alternative Risk Management (ARM), BWCI, Hepburns, and Robus.
Innovative and proportionate regulation
PCCs, pioneered by Guernsey, and ICCs provide legal segregation between assets and liabilities as well as the ability to create cells that are bespoke to individual family members or asset classes.
Guernsey has also made legislative advancements that have created a regulatory environment which allows for their flexible use. This combination of experience and creativity means Guernsey is leading the way in providing cutting edge solutions to meet clients' complex risk transfer needs.
Since 1 January 2016, all captives domiciled within the European Union have had to comply with Solvency II, the EU’s harmonised insurance regulatory regime. Guernsey is not in the EU and as such is not required to implement Solvency II.
Instead, Guernsey's new regime distinguishes between commercial (re)insurance and captive insurance. As such, captives in Guernsey will have a minimum capital requirement of £100,000 and confidence levels of 90%. This proportionate approach should be very attractive to current and potential captive owners and especially those who still want a domicile within the European region.