Guernsey’s captive insurance sector is experiencing a big rise in inquiries in the second half of 2019, with industry figures saying the level of significant inquiries this summer has easily surpassed recent years.
Guernsey Finance reports that the island remains Europe’s leading centre for captive insurance. It is responsible for more than a third of the European captives market, and for more than half of all new captives established in Europe in 2017, with nine new formations. That number dipped to five in 2018, but Guernsey is expecting to see that figure overtaken this year.
Increased interest was expected as market conditions harden, but was proving stronger than anticipated, said Dominic Wheatley (pictured), Chief Executive of Guernsey Finance.
He added that the increased interest in the Guernsey captives market dismissed fears raised in Bermuda that EU economic substance requirements were damaging the offshore captives industry.
“Substance demands have not had too much impact on Guernsey captives, because our economic substance regime is robust and as a jurisdiction we have always managed captives properly,” said Mr Wheatley.
“Guernsey offers strong governance processes, credible insurance skills, proper analytics and technical underwriting methodology, and adherence to all of the requirements of CFC rules wherever the captive-owning group is based.
"All this was verified when the EU code group confirmed that our corporate tax regime met their expectations and requirements as acceptable in terms of transparency and cooperation.
“This verification joins with the recent positive endorsement of our regulatory environment by the International Association of Insurance Supervisors, and Moneyval’s assessment of our AML regime as the most compliant in the world, to provide a unique environment of verified excellence in key areas of international cooperation against poor financial practice.”