Continued success – Guernsey’s captive insurance industry has successfully grown since the first captive was launched in the Island in 1922. This has developed experience, infrastructure and accumulated intellectual capital which ensures the Island remains at the forefront of international insurance centres.
The highest reputation and standards – Insurance business can be transacted with confidence in Guernsey as the Island has been scrutinised and endorsed by the International Monetary Fund and the Financial Action Task Force and operates benchmarking standards using the Insurance Core Principles of the International Association of Insurance Supervisors.
A positive environment for insurance
Lower costs – Guernsey has a flexible, risk-based capital regime, which means the capital cost to Guernsey insurers can be lower than elsewhere. These insurance vehicles can then access the wholesale reinsurance markets directly and more effectively.
Pragmatic regulation – The Guernsey Financial Services Commission promotes a robust yet pragmatic regulatory regime and is renowned for being approachable, accessible and open to new ideas. This approach allows insurers to adopt innovative and cost-effective solutions that are highly tailored to the policyholders, whilst ensuring compliance with regulations and the Island’s modern insurance laws.
Innovative legislation – Modern company law remains advanced through continuous improvement. Legislation permits PCCs, ICCs, limited partnerships and the amalgamation and migration of companies.
Flexibility – There is no restriction on the types of business that can be underwritten.
Strong corporate governance – Guernsey has an experienced and qualified pool of non-executive directors.
Competitive tax environment – Captives are exempt from paying income tax and from 2008 there will be a zero rate for corporate entities. There is no withholding tax on dividends paid, no capital gains tax or VAT.
Conveniently located – The Island’s location between Europe and the UK places it in a time zone between the US and the Far East. This makes Guernsey a convenient place to carry out business with many different countries. Travelling to the Island is also quick and easy as there are frequent air and sea links to both Europe and the UK, with a flight time from London taking less than an hour.
A ‘one day business solution’ – Guernsey has a broad-based financial services industry (including support services) and all of the Island’s businesses and key institutions are in close proximity to each other so an extensive array and high volume of business can be carried out face-to-face and in a short amount of time.
Highly developed business support infrastructure – Carrying out business in Guernsey is quick and easy because the Island has a high quality infrastructure, including a newly upgraded first class telecommunications network that is unsurpassed offshore.
Special relationship with the EU – Businesses based on the Island have the advantages of being in a jurisdiction that is within the Common Customs Area and Common External Tariff without all the implications of operating from a full member of the EU. For example, directives such as those on fiscal harmonisation, financial services and company law do not have effect in Guernsey.
Stability – Continuity within Guernsey’s democratic government offers political and economic stability and thereby a safe and secure environment on which business can rely.
Independence – Legislative and fiscal independence allows the Island to respond quickly to the needs of business.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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