Following the announcement of 45 new insurance licences issued
in Guernsey in the first six months of the year, Mr Child told the
Press that he expected to see more reinsurance and pension
longevity business coming the Island's way before the end of
the year. Both sectors saw significant developments in 2014 and
have been a focus for the Island's captive insurance
Mr Child said he expected to see the establishment of one or two
new reinsurance companies – a niche where the business
actually establishes a physical presence in Guernsey, although the
number of people employed would be low – and more pension
longevity deals agreed in the rest of 2015.
Mr Child said market development was a real focus for GIIA and
it is hosting a London event for the reinsurance sector next month.
This follows three events in London and Switzerland held over the
past year or so promoting the burgeoning Insurance Linked
Securities (ILS) sector.
All three sectors are niche elements of the captive insurance
industry, which Mr Child described as the 'bedrock' of
Guernsey's insurance sector, the smallest but certainly an
innovative leg of the Island's four-pronged finance
"We differentiate ourselves with smaller niche bits of
work. Our challenge in market development and selling is there are
different markets for different sectors, so you need to be very
specific," said Mr Child
Mr Child said the licence statistics revealed by the Guernsey
Financial Services Commission – 45 news licenses issued and a
net increase of 19 for the industry, taking the total number of
insurers above 800 – was positive and 'better than
"But the number of licences can hide the true picture of
the business, the numbers are potentially distracting when it comes
to value. One protected call company may have as much value as 50
cells, for example."
The sector had seen an influx of non-traditional business,
including cells for property and legal expenses insurance, he said,
but the majority of the new business recorded would be ILS, with
Guernsey particularly seeing a trend of European companies with ILS
structures in Bermuda moving that business back into Europe and to
Guernsey, the number one European jurisdiction for captives.
"ILS is still going from strength to strength. It is being
seen as part of an investor's balanced portfolio now and is
certainly here to stay."
Local figures in the industry were responsible for much of the
influx of new business, he said, rather than relying on a flow of
business from international parent companies.
"The majority of the growth we're seeing is as a result
of Guernsey individuals going out and getting business themselves
and bringing it back to Guernsey."
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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