Guernsey bolsters international credentials
According to the Guernsey Financial Services Commission (GFSC) the domicile has licensed 46 international insurance entities in the first half of this year. As of June 2013 there were 766 international insurers licenced on the island, a net growth of 29.
Fiona Le Poidevin, chief executive of Guernsey Finance, said: “These figures show that the first half of this year has been very successful for Guernsey as an international centre. The numbers are particularly impressive considering that they follow a very strong performance during the past couple of years.”
Nick Wild, executive chairman – global (ex-Americas) at JLT Insurance Management in Guernsey, noted that his own firm has seen success with the first insurance-licensed ICC entity in Guernsey with an Asian headquartered parent. He explained : “The ICC structure appeals to Asian clients because enterprises are often owned by one family with individual members responsible for different parts of business. The ICC allows the group business risks to be under one umbrella but the separate assets and liabilities to be managed through individual cells which can become their own profit centres.”
He continued: “Guernsey’s experience and expertise in establishing cell company structures means it is ideally positioned to service this emerging market in doing so, helps diversify the Island’s business base which has been predominantly European.”
Paul Sykes, managing director of Aon in Guernsey, added that Insurance Linked Securities (ILS) cells had also seen an uptick in the domicile and considers this type of ILS business a driving force behind the recent increase in cells established on the island, and that such diversification adds to the Island’s position as an international insurance centre.
Le Poidevin continued: “Guernsey Finance is working with Guernsey International Insurance Association to help promote Guernsey as a centre for ILS in recognition of the fact that the Island is an emerging centre for excellence for this business. The cost efficiency of our structures and the speed to market which we offer mean that we compare very favourably with other domiciles. These factors, coupled with the on-Island collaboration between our experienced insurance and funds sectors, make Guernsey a logical choice for ILS and related business.”