Most Read: Contributor Guernsey, April 2020
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Since the first captive insurance company in Guernsey was formed in 1922 the Island has grown to become Europe's leading captive insurance domicile, with more than 600 captive entities and amongst the top four in the world in terms of premium written, which stands at in excess of $6.8bn.

In Guernsey, licensed entities can be structured as pure, broad or commercial captives and may be formed within a Protected Cell Company (PCC) or as a cell within an Incorporated Cell Company (ICC).

Last year (2007) marked the tenth anniversary of when Guernsey introduced the PCC concept to the world. It was pioneered in response to the needs of the Island's pre-eminent captive insurance industry. At the end of that year (1997) its international insurance sector boasted 6 PCCs and 14 cells but by the close of 2007 this had risen to 69 PCCs and 257 cells. During that period Guernsey also introduced the innovative ICC structure.

Guernsey's captive insurance industry continues to grow and in 2007 the number of captive entities (captives, PCCs/ICCs and cells) rose, once again, to 632 (with some 300 pure captives) and including the Island's first insurance ICC.

Approximately 40% of the top 100 companies on the London Stock Exchange have captives in the Island. However, Guernsey is a truly international captive domicile. Firms from across the globe, including Europe, USA, Australia, South Africa, Hong Kong, Japan and Saudi Arabia, have established captives in the Island.

Guernsey hosts a range of providers from the major players such as Aon, Marsh, Heath Lambert, JLT and Willis to independent, boutique operators like Heritage Insurance Management and Alternative Risk Management (ARM).

Establishing A Guernsey Captive

The salient issues to be considered when establishing a Guernsey captive include:

Legislation The Insurance Business (Bailiwick of Guernsey) Law 2002, as amended and associated Codes, Rules, Regulations and Guidance.

Regulation Insurance regulation has been in place since 1986. Details of regulatory requirements, fees and application documents are available on the website of the regulator, the Guernsey Financial Services Commission.

Solvency Requirements

Minimum Margin of Solvency

18% of the first £5m. of net earned premium plus 16% of any excess or 5% of average claim value if greater


Minimum Capital Requirement

Non-life Business


Life Business


Company Formation



Annual Filing Fee


Tax Rate


Minimum Shareholders


Regulatory And Supervisory Body

Guernsey Financial Services Commission
PO Box 128, La Plaiderie Chambers
La Plaiderie, St Peter Port
Guernsey, GY1 3HQ

Tel: +44 (0) 1481 712706
Fax: +44 (0) 1481 712010

For more information about Guernsey's finance industry please visit

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Peter Niven
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