29 June 2016Analysis

MoU signed between Guernsey and China’s insurance sectors

The representative body of Guernsey insurers and insurance managers, the Guernsey International Insurance Association (GIIA), has signed Memorandums of Understanding (MoU) with both the China Captive Alliance and the regional government of Kashgar.

GIIA’s agreement with China Captive Alliance sets out a statement of intent to facilitate business development initiatives between the two parties, international communication and information sharing.

The managing director of Alternative Risk Management, Charles Scott, signed the MoU on behalf of GIIA alongside Yongjie Liu, the general manager of the China Captive Alliance.
Scott commented: “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.”

Liu added: "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."

The Asia Representative for Guernsey Finance, Wendy Weng, also signed an MoU on behalf of Guernsey’s insurance sector with the Kashgar Government.

Located in the Xinjiang autonomous region in northwest China, Kashgar has established itself as a centre for the country’s growing captive insurance sector with 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 MoU between Guernsey and the Kashgar Government provides for cooperation between the two jurisdictions in the areas of captive insurance market development, financial innovation, international communication and information exchange in a bid to promote the viability of the Chinese captive market and communication between China and the international captive industry.

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.”

Weng added: “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 Asia-Europe Captive Summit in Kashgar on 26 June.