WE ARE AGILE

Guernsey’s Val des Terres is the Formula 1 of British hillclimbing. Racing cars must be agile as they twist and turn to reach the top. Similarly, Guernsey’s autonomy allows us to respond quickly and shift to the changing needs and direction of the financial market.

WE ARE PIONEERING

In the 19th century, Guernsey played a key role in establishing the UK postal system: the UK’s oldest pillar box is still standing in Guernsey’s capital. Guernsey continues to break new ground – more recently with cell company legislation and longevity risk swap.

WE ARE INNOVATION

During the years he lived and worked in Guernsey, Victor Hugo was inspired by the island, completing 'Les Miserables' as well as decorating his house with a plethora of unique materials. Guernsey is still inspiring innovation today - none more so than in our insurance industry.

WE ARE BESPOKE

In the mid-19th century, bespoke and hand-crafted Guernsey doors were highly desirable. Bespoke creations are still the pride of Guernsey, particularly when it comes to our insurance offerings.

Insurance 

Guernsey is home to a specialist insurance sector, providing alternative risk transfer solutions to sophisticated clients such as corporations, investment managers and pension schemes.

As long ago as the early 20th century, Guernsey has been home to captive insurance companies with corporate clients. More recently, Guernsey special purpose insurers have been used for rated and fully-collateralised reinsurers.

Innovative

Guernsey’s insurance sector is pioneering and innovative, boasting a position of leadership in the structuring and execution of alternative risk transfer.

In 2017, a Guernsey-domiciled reinsurance transformed issued the first notes ever to have been digitised on the blockchain.

In 2014, a Guernsey incorporate cell company was used to undertake a £16 billion longevity risk swap on behalf of the BT Pension Scheme.

In 1997, Guernsey was the first jurisdiction to introduce cell company legislation, which has been replicated elsewhere since.

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.

Flexible and responsive

The island’s position of leadership in the structuring and execution of alternative risk transfer is due to the island’s flexible, responsive regulatory regime which is quicker, less prescriptive and more flexible than Solvency II.

While Guernsey observes the IAIS Core Principals - the global standard for international insurance supervision – it affords greater flexibility and responsiveness than elsewhere.

For example, Guernsey’s regime distinguishes between different classes of insurers (e.g. commercial and captive insurance companies) and places proportionate regulatory burdens on each. Further, Guernsey’s regulator maintains a discretion to modify regulatory requirements on a case-by-case basis.

The result is an environment perfect for start-ups, innovative operations and niche providers.

14 Nov 2019

ILS Insight London

Eight Club Bank
1 Change Alley
London 
EC3V 3ND

23 Jan 2020

Guernsey Finance Industry Update

St James Concert and Assembly Hall
College Street
St Peter Port
GY1 2NZ