Since the first captive insurance company in
Guernsey was formed in 1922 the Island has grown to become
Europe's leading captive insurance domicile, with more
than 600 captive entities and amongst the top four in the world
in terms of premium written, which stands at in excess of
In Guernsey, licensed entities can be structured as pure,
broad or commercial captives and may be formed within a
Protected Cell Company (PCC) or as a cell within an
Incorporated Cell Company (ICC).
Last year (2007) marked the tenth anniversary of when
Guernsey introduced the PCC concept to the world. It was
pioneered in response to the needs of the Island's
pre-eminent captive insurance industry. At the end of that year
(1997) its international insurance sector boasted 6 PCCs and 14
cells but by the close of 2007 this had risen to 69 PCCs and
257 cells. During that period Guernsey also introduced the
innovative ICC structure.
Guernsey's captive insurance industry continues to
grow and in 2007 the number of captive entities (captives,
PCCs/ICCs and cells) rose, once again, to 632 (with some 300
pure captives) and including the Island's first
Approximately 40% of the top 100 companies on the London
Stock Exchange have captives in the Island. However, Guernsey
is a truly international captive domicile. Firms from across
the globe, including Europe, USA, Australia, South Africa, Hong
Kong, Japan and Saudi Arabia, have established captives in the
Guernsey hosts a range of providers from the major players
such as Aon, Marsh, Heath Lambert, JLT and Willis to
independent, boutique operators like Heritage Insurance
Management and Alternative Risk Management (ARM).
Establishing A Guernsey Captive
The salient issues to be considered when establishing a
Guernsey captive include:
Legislation The Insurance Business
(Bailiwick of Guernsey) Law 2002, as amended and associated
Codes, Rules, Regulations and Guidance.
Regulation Insurance regulation has been in
place since 1986. Details of regulatory requirements, fees and
application documents are available on the website of the
regulator, the Guernsey Financial Services Commission.
Minimum Margin of
18% of the first £5m.
of net earned premium plus 16% of any excess or 5% of
average claim value if greater
Annual Filing Fee
Regulatory And Supervisory Body
Guernsey Financial Services Commission
PO Box 128, La Plaiderie Chambers
La Plaiderie, St Peter Port
Guernsey, GY1 3HQ
In this publication, we address how Dubai is leading the way in the application of technology to its healthcare insurance system and how the health insurance law is developing around these initiatives.
The European Insurance and Occupational Pensions Authority published a consultation paper on Implementing Technical Standards on the standardisation of the presentation of the insurance Product Information Document.
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.
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).