The authorities in Guernsey have no plans to seek equivalence
under Solvency II.
Guernsey remains committed to meeting internationally accepted
regulatory standards as set by the IAIS and endorsed by the G20. In
2011 the IAIS standards will be changing to take account of latest
developments on risk based solvency.
The States of Guernsey and the GFSC will be focused on amending
Guernsey's regulatory regime to take account of these
international developments. Obviously any changes to that regime
will need to take account of the nature of, and be appropriate to,
Guernsey's insurance industry.
Work on implementing those emerging global standards in
Guernsey's regulatory regime will continue in 2011 and will
involve full consultation with Guernsey's insurance
Parallel to this work the Commerce and Employment Department
and the GFSC will continue to monitor developments on Solvency II
with a view to determining whether or not full or partial
equivalence may be beneficial to Guernsey.
Before any decision is made as to whether Guernsey should seek
equivalence in the future the Department and the GFSC will consult
with Guernsey's insurance industry to ensure that the
implications of seeking equivalence are fully understood.
The statement ends.
Peter Niven, Chief Executive of Guernsey Finance – the
promotional agency for the Island's finance industry, said:
"Guernsey is the largest captive insurance domicile in the
European region but of course we lie outside the EU and as such, we
cannot adopt its Directives but can seek equivalence. We have
carried out a thorough evaluation of Solvency II and believe that,
as things stand at the moment, seeking equivalence would not be
right for our insurance market which is a world leader in captive
insurance. Indeed, the treatment of captives under Solvency II
remains uncertain and so we will be keeping a close eye on this and
Solvency II as a whole to assess progress and how it might impact
our market in the future. Guernsey remains committed to meeting
internationally accepted regulatory standards as set by the IAIS
and endorsed by the G20, including the latest developments on risk
Dominic Wheatley, Managing Director of Willis Management in Guernsey and Chairman of
the Guernsey International Insurance Association
(GIIA), said: "The Guernsey International Insurance
Association is very happy that Guernsey's position on Solvency
II equivalence has been clarified. This puts an end to
speculation on the subject and gives certainty to those
involved in or looking to be involved in the Guernsey international
"We believe that the position the Island has
adopted will enhance Guernsey's attractiveness as a
domicile to captive owners and other niche insurers looking for a
regulatory environment that responds to the smaller
scales of business and simpler business models typical
businesses. Guernsey combines good
international practice, as witnessed by the recent IMF report,
with responsive, pragmatic regulation. We believe
that the Island's future success lies in
continuing this tradition as a high-quality alternative
to the EU and other mainstream business
Guernsey has an international insurance industry with 675
international insurance entities, comprising 341 international
insurers (pure captives, PCCs, ICCs and ICC cells) and 334 PCC
cells with combined gross assets of £23.4bn, a net worth of
£8.1bn and writing £3.4bn in premiums.
Since the PRIIPs Regulation was published on 9 December 2014, the concept of a multi-option product has been one of the most discussed topics among the manufacturers of insurance-based investment products.
Directors & Officers Insurance (D&O) is a relatively new
branch of insurance in the United Arab Emirates (UAE) market.
Accordingly, issues such as allocation of costs have not yet been
considered by UAE or Dubai International Financial Centre (DIFC)
The MFSA issued a consultation document proposing the introduction of external auditing requirements for certain quantitative reporting templates that will form part of the Solvency Financial Condition Report.
From August 12 2016 when the UK's Insurance Act 2015 takes effect there will be differences affecting business (ie non-consumer) policies issued in Isle of Man and those issued in UK, including renewals.
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