Guernsey stresses captive insurance advantages in Hong Kong
The advantages of using a captive instead of insuring through the commercial insurance market have been highlighted at Guernsey’s recent insurance masterclass in Hong Kong.
Guernsey has recently signed Memoranda of Understanding (MoU) with China Captive Alliance and the Kashgar Government. Both agreements set out a statement of intent to facilitate captive insurance market development initiatives and information sharing between the parties.
Kate Clouston, director of international business development at Guernsey Finance, said the Hong Kong event, which took place on Friday, November 4, examined the global popularity of captives and their expected increase in popularity in Asia, where captive use is still in its infancy.
“Captives allow for improved risk management and a greater understanding of the cost of risk. Not only that, but they also provide direct access to the wholesale reinsurance market and greater control of claims and result in less reliance on the commercial insurance market,” said Clouston.
“It’s a concept that is still being understood in China and Asia in general, but that is where future growth in the captives sector will be concentrated, as opposed to the US and Europe where their use and advantages are already well-known.
“Captives are certainly going to be at the forefront of innovation in Asia’s insurance market and Guernsey is proud to be recognised as a centre of excellence in this area. The interest shown by the audience at this event makes us believe there are significant opportunities for Guernsey practitioners to partner with corporate and individual clients in the region and to help build the market.”
The captive insurance panel at the event was moderated by Andy Sloan, director of financial stability and international policy at the Guernsey Financial Services Commission (GFSC).
Panelists included Caroline Bradley of the GFSC, Geoffrey Cao from the Captive Website of China, Charles Scott of ARM and Rex Ho of PwC.