Guernsey representatives have signed Memoranda of Understanding
(MoU) with both the China Captive Alliance and the Kashgar
An agreement between the Guernsey International Insurance Association
(GIIA), the representative body of both Guernsey insurers and
Guernsey insurance managers, and the China Captive Alliance, the
most authoritative professional captive institution in China, sets
out a statement of intent to facilitate business development
initiatives between the two parties, international communication
and information sharing.
Charles Scott, Managing Director of independent insurance
Risk Management (ARM), signed the MoU on behalf of GIIA
alongside Yongjie Liu, General Manager of the China Captive
Mr Scott said: "This Memorandum of Understanding
establishes a very important framework for the cooperation and
development of our two jurisdictions in the area of insurance,
specifically captives. Guernsey is Europe's number one captive
insurance domicile and is perfectly placed to offer guidance and
share the expertise it has gained through more than 50 years of
providing financial services. It also means that Guernsey is now
well positioned to benefit from captive opportunities in the
international arena that emerge from Chinese corporates."
Mr Liu said the MoU was an important step for the Chinese
captive insurance market:
"We are impressed by Guernsey's extensive and proven
experience in captive insurance. By utilising their knowledge, we
have enhanced both the scope and strength of our own sector,"
Guernsey Finance Asia Representative Wendy Weng has also signed
an MoU on behalf of Guernsey's insurance sector with the
Kashgar Government. Kashgar, located in the Xinjiang autonomous
region in northwest China, has become the dedicated centre for the
country's growing captive insurance sector thanks to the
support of the People's Bank of China, the China Insurance
Regulatory Commission, the China Banking Regulatory Commission and
the China Security Regulatory Commission.
The agreement provides for cooperation between the two
jurisdictions in the areas of captive insurance market development,
financial innovation, international communication and information
exchange in order to promote the viability of the Chinese captive
market and communication between China and the international
Fenglin Xu, Deputy Director of the Kashgar Trade Development
Zone, said: "The signing of the MoU between ourselves and
Guernsey is an important step to enhance the captive insurance
market in China. Guernsey is a leader in captive insurance and we
are delighted to be working with them."
Ms Weng said: "These agreements represent a very positive
development in the enhancement of our broader relationship with
China. China's developing and evolving captive insurance sector
recognises that there is plenty it can learn from Guernsey in this
area and we are more than happy to help where we can. There is
significant interest in China and Asia generally in doing business
with Guernsey and we hope that this MoU will help to facilitate
those business flows."
Both MoUs were signed during a ceremony at the first ever
Asia-Europe Captive Summit in Kashgar on 26 June.
Growth in the captive insurance market will be driven by intermediaries and brokers establishing vehicles to aggregate the risks of their individual customers, it has been claimed by a panellist at the Guernsey Insurance Forum.
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