Guernsey: Domicile Choice Comes To The Fore At Guernsey ILS Event In Zurich

Last Updated: 9 July 2014
Article by Fiona Le Poidevin

Most Read Contributor in Guernsey, September 2016

The choice of domicile for ILS transactions was among the hot topics discussed by leading industry players at a Guernsey Finance-hosted thought leadership event in the reinsurance centre of Zurich on Wednesday 2 July.

The event attracted 80 delegates from around the world, including Japan, Hong Kong, France, the UK and Switzerland and from across the asset management, wealth management and reinsurance and adviser communities.

It was held at the Park Hyatt Zurich where there were two panel sessions featuring ILS experts from Guernsey, the UK and mainland Europe. Domicile choice was one theme which stood out through both sets of discussions and Guernsey was singled out for praise.

Jonathan Barnes from Securis Investments said: "I am very happy with our relationship with Guernsey. In particular, it is situated in a favourable time zone, the banks are very responsible and the regulator is helpful. There is a strong pool of talent to draw upon which is not always the case in other domiciles and the proximity to London makes it nice and easy for us."

Mark Helyar from Bedell Cristin in Guernsey said that the Island offers a hybrid proposition which is different to other domiciles in that it not only provides Protected Cell Companies (PCCs) and Incorporated Cell Companies (ICCs) for the reinsurance vehicles but also a number of flexible fund structures to facilitate investment in ILS, such as companies, PCCs and ICCs, General Partner (GP) and Limited Partner (LP) vehicles, and both open and closed schemes.

In particular, Mr Helyar noted that more ILS deals in Guernsey tend to be peer to peer transactions which are bespoke in nature. Pius Fritschi of LGT Capital Partners said that flexibility in terms of types of funds was crucial along with a regulatory framework which provides the necessary security for parties engaged in ILS transactions.

The first panel session focused on the renewal season and recapped on the key trends of 2014 with a particular focus on modelling, pricing, transformation structures, choice of domicile and particular challenges in the space.

Moderated by John Rowson of Aon Risk Solutions, the session featured Niklaus Hilti of Credit Suisse; Justin Wallen of Hexagon PCC Group; Mr Barnes; and Piers Cantlay from Aon Benfield.

The panel questioned whether the models on Florida natural catastrophe risk were truly representative of the potential loss but it was still felt that the sector was profitably priced. Mr Cantlay said that "the gut feeling is there's a massive concentration of exposure" and Mr Barnes said that "it's very vulnerable."

Mr Hilti said that "the models are not capable of reflecting such a specific risk type" and therefore "need a little bit of adjustment" but "it is still certainly amongst the most profitable businesses."

They also considered the structures used in ILS, such as the Guernsey-pioneered PCC and ICC, as well as the need for pre-authorisation and fast track regulatory regimes which are available in the Island.

Mr Barnes said that it was important to be able to sit down with the regulator and to be in the position to move quickly when required as deals are often fast paced.

The second panel session looked at investment and concentrated on the challenges of investing in ILS, investor perceptions and the comparative merits of certain types of investment strcutures.

Moderated by Robin Fuller of Dexion Guernsey, the session comprised Mr Helyar; Barrie Duerden of Rothschild Wealth Management; Sandro Zwyssig of Bank Julius Baer; Mr Fritschi; and Patrick Stampfli of Schroder Investment Management Switzerland. The panel concluded that managers were increasingly allocating to ILS due to the fact that it was uncorrelated to the wider markets at a time when investors are seeking liquidity and an income stream.

Fiona Le Poidevin, Chief Executive of Guernsey Finance - the promotional agency for the Island's finance industry, said: "There was recognition from the panellists that Guernsey brings something different to the market in terms of domiciling ILS structures. Guernsey is very attractive because of our experience of insurance business, together with the structuring of investment funds and listing vehicles and this means that what we offer is differentiated to other domiciles.

"The panellists also highlighted that they liked Guernsey's fast track approval regimes for both insurance and funds and the responsive and approachable stance of the regulator. Innovation is also important and whilst Guernsey has a very good track record, for example with PCCs, it is important that we build on that record and this is something we are already working on with industry."

'ILS Insight', which was free to attend, was supported by news and analysis specialist and insurance magazine Reactions. Event sponsors were Bedell Cristin and Aon. Miss Le Poidevin said: "I am extremely pleased with the success of the event. It was a very good turnout from a wide spectrum of the ILS community and I think that it demonstrates the large interest in what is still a growing asset class."

New figures show that the Guernsey regulator licensed 96 new international insurance entities in the 12 months to the end of May, with a significant number related to ILS.

There were a total of 796 international insurance entities domiciled in the Island by the end of March 2014.

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.