Gibraltar praised for dual captive regime
Gibraltar has claimed a record year for its insurance industry, which achieved historic underwriting of circa £7 billion of gross written premiums in 2022. It has also flagged new captives legislation set for later this year, which it described as testament to the jurisdiction's commitment to fostering innovation and remaining relevant in a competitive global insurance market.
The new legislation was conceived in response to the industry's request for greater flexibility for captive insurance, for a dual captive regime.
The Gibraltar Financial Services Commission has also said it is witnessing the longest pipeline of insurance applications in the past decade. This influx of new prospective applicants demonstrates the industry's attractiveness and potential for sustained growth in the years ahead.
In terms of the broader industry, motor insurance remains the dominant sector with Gibraltar's insurers collectively exceeding a 30% market share of the UK motor insurance market for the first time. This noteworthy accomplishment affirms Gibraltar's position as a leading insurance domicile for motor insurance policies.
Whilst motor insurance remains the major sector, Gibraltar’s insurance industry, has in recent years, built and consolidated its position in other classes of business. It is today estimated that Gibraltar pet insurers have a collective share of the UK pet insurance market of circa 20% and Gibraltar travel insurance platforms are used to intermediate more than 30% of all travel insurance policies sold in the UK. This trend signifies the industry's ability to adapt to evolving consumer needs and demonstrates growing diversity within Gibraltar’s insurance sector.
Furthermore, in recent years Gibraltar has attracted re-domiciliation of foreign insurers. This demonstrates Gibraltar's appeal as an insurance domicile.
Gibraltar is also experiencing genuine interest from the life insurance sector, with at least one new applicant applying for regulatory approval. If a new applicant is licensed, this will bring welcome diversification to Gibraltar’s insurance sector.
The statistics were revealed in a report by Startup Grind Gibraltar, which will host a conference in Gibraltar on January 24.
Nigel Feetham KC, Minister with responsibility for Financial Services at HM Government of Gibraltar, highlighted the significance of the insurance sector in Gibraltar, welcoming the opportunity for the industry to come together, commenting:
“Insurance firms licensed in Gibraltar play an important role in supporting both the local and the UK economies as well as providing significant underwriting capacity to the UK, with Gibraltar being in a position of having unique market access to the UK.”
