Captive use on the rise in Guernsey: Aon
Guernsey is continuing to benefit from an increase in the use of captives and a flow of global capital.
This is according to Aon Risk Solutions, which recently hosted its annual Guernsey captive and insurance master class at Lloyd’s, attended by over 100 executives.
Aon’s recent global risk management survey has highlighted a growth in using an active captive or protected cell company (PCC) up to 18 percent from 15 percent in 2013. Aon said it expects continued growth as the need for alternative risk financing solutions is growing exponentially.
Peter Mullen, chief executive officer of Aon Captive and Insurance Management, said: “There are a number of reasons for having a captive however as risks become more complex and interconnected, we see captives being used in much more strategic ways, rather than being driven purely by cost efficiencies.”
Paul Sykes, managing director of Aon Insurance Managers (Guernsey), added: “We are encouraged by the continued interest in the Aon Guernsey master class and are delighted to have held the event at Lloyd’s for the second year running.
“One year on it is clear from the work we are doing with the rating agencies for clients that capital is being directed towards rated reinsurance for both captives and commercial reinsurance startups.”