Regulation of Guernsey’s insurance industry is meeting current international standards, according to a report published by the International Association of Insurance Supervisors (IAIS).
The report says Guernsey has 'a high level of observance of current international standards'. It highlights the island’s success in keeping pace with developments in Insurance Core Principles (ICPs) – a globally accepted framework of principles, standards and guidance for the regulation and supervision of the insurance sector.
The Guernsey Financial Services Commission is an active member of IAIS, which promotes cooperation among insurance supervisors worldwide. The Guernsey report is the first time it has provided a member with in-depth feedback on the implementation of ICPs.
Guernsey is a leading captive insurance market in Europe, and is engaged in reinsurance, insurance-linked securities and longevity risk transfers, as well as some specialist insurance.
Supervisory standards
The report highlights high supervisory standards in Guernsey and its drive to be competitive on cost. It says the GFSC keeps up with regulatory and supervisory developments and its supervisory programmes are well managed, well organised and effective in dealing with policyholder risk.
GFSC Chairman Dr Cees Schrauwers said: “We are pleased to receive the report from IAIS. The assessment provides a high-quality update to the 2010 IMF assessment of our observance of standards, and it gives international counterparties assurance that they may place reasonable reliance on the bailiwick’s regulatory standards and those of the firms operating under them.”
Jonathan Dixon, IAIS Secretary General, said: "The IAIS conducts assessments as a core function of its implementation programme. They help members identify the nature and extent of any areas for improvement or gaps in their supervisory and regulatory frameworks and promote understanding and observance of IAIS supervisory material.
“These assessments also provide information on the level of current supervisory capacity and the extent of future supervisory development needs for individual authorities as well as regional and global groupings of supervisors.”
The Guernsey insurance industry includes 36 insurance intermediaries and 20 insurance managers, largely engaged in managing captive insurers and speciality niche insurers, and in total more than 650 licensed international insurers.