The Guernsey Financial Services Commission licensed 89 insurers during 2013, with a net growth of 21 insurers, bringing the total licensed insurers on the Island to 758.
New formations included 10 limited companies, 6 protected cell companies (PCCs), 63 PCC cells, 2 incorporated cell companies (ICCs) and 8 ICC cells.
Much of the growth in cell formations has been attributed to the rise in insurance-linked securities structures.
Commenting on the trend, Fiona Le Poidevin, chief executive of Guernsey Finance said: “It is pleasing to see that Guernsey remains a popular international insurance centre. These figures build on last year’s very strong performance and together mean that nearly 200 international insurance entities have been licensed in the Island during the last 24 months. The increases continue across the different types of entities, although there is particularly strong growth in PCC and ICC cells and especially in relation to ILS structures.
“Guernsey’s international insurance expertise, our close proximity to both London and Zurich and our access to major global capital markets mean that we are increasingly viewed as a centre of choice for ILS. We are looking to build on this during 2014 through a number of different marketing and promotional activities which will highlight that Guernsey not only has a particularly experienced insurance sector but also a large investment funds community so is able to bring together both sides of the ILS equation.”
Paul Sykes, managing director of Aon Guernsey and chairman of the Guernsey International Insurance Association (GIIA), said: “Guernsey continues to provide an attractive environment for establishing a wide variety of international insurance entities, including ILS structures, and we see significant opportunities for growth in the management of Sharia compliant insurance products. Of particular importance is our regulatory regime which continues to respond to innovative proposals while also offering proportionality through meeting the insurance core principles of the International Association of Insurance Supervisors (IAIS).
Guernsey, captive formations, insurance