Guernsey’s insurance industry is renowned for its innovation and professionalism in providing a range of risk management solutions.
The Island’s international insurance sector comprises pure captives and commercial insurers using flexible vehicles such as protected cell companies and incorporated cell companies to write an extensive range of different business and where major growth areas are:
- ATE insurance
- Credit insurance
- Professional indemnity
- Transformer cell
The insurance industry in Guernsey has origins dating back to the eighteenth century. Since the first captive was formed in Guernsey in 1922 the Island has grown to become the leading the captive insurance domicile in Europe in terms of numbers of captives and is fourth in the world based on premiums written.
Indeed, approximately 40% of the UK FTSE 100 companies have captives in the Island. In addition to UK companies a number of firms in Europe, USA, South Africa, Australia and the Caribbean have established captives in Guernsey.
Guernsey plays host to subsidiaries of major companies such as AIG, Aon, Catlin, Converium, Generali, Heath Lambert, Hiscox, Jardine Lloyd Thompson, Marsh, Old Mutual, Royal & SunAlliance and Willis. Independent, boutique operators such as Heritage Insurance Management and Alternative Risk Management (ARM) are also present, providing a holistic environment for insurance solutions.
Guernsey, with its robust yet pragmatic regulatory environment, has built a wealth of experience and expertise in providing management and administration of captives.
This reputation for quality of service is complemented by the Island’s continued drive for innovation. The Island was the first jurisdiction to introduce the protected cell company (PCC). It is a tribute to Guernsey’s success that the PCC concept, in various guises, has been replicated by other jurisdictions. However, the Island is still recognised as the pioneer of the PCC.
Guernsey has now introduced the incorporated cell company (ICC), adding yet another product to the range on offer in the Island and complementing those already in existence, including the PCC. Work is ongoing to enhance the Island’s infrastructure to ensure that it remains a cutting edge international insurance centre.
As well as the major growth areas the Island’s insurance sector writes significant amounts of business in: employers/public liability, material damage/business interruption, motor, property damage and business interruption, and transport.
A niche area that has seen significant development in recent years is international life insurance. This sector offers insurance based employee benefits (life and health) and wealth management solutions to a global audience. The three largest multinational employee benefit networks are represented in Guernsey, providing life, disability, health, saving and pension solutions to international corporates and organizations. There are a number of specialised life companies focusing on high net worth individuals.
The Island also has a domestic insurance sector where Guernsey residents are able to take out insurance policies with locally based insurers like the Insurance Corporation of the Channel Islands or insurers located outside of the Island such as Norwich Union. There are also ‘recognised insurers’ who while not licensed in Guernsey can write business in the Island but only on the proviso that they are not allowed to advertise these services.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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