11 September 2015Actuarial & underwriting

Guernsey to highlight captive solutions at masterclass

An insurance masterclass is set to discuss captive insurance solutions and tell the story behind the BT Pension Scheme’s record breaking longevity risk transfer with the Prudential Insurance Company of America.

The event, Longevity - is there life in captives?, will take place in London on October 14, 2015 and is hosted by Guernsey Finance in conjunction with the Guernsey International Insurance Association (GIIA).

John Coles, head of operations for the BT Pension Scheme, is keynote speaker for the event.

Coles will outline how BT structured the £16 billion longevity swap and why a Guernsey-based structure was used.

The event will also include a panel debate which will examine captive insurance solutions as well as longevity trends, needs and future opportunities.

The session will be moderated by captive insurance veteran Malcolm Cutts-Watson and include panellists Ian Aley of Towers Watson; John Dunford of the Guernsey Financial Services Commission (GFSC); Philip Jarvis of Allen & Overy; Paul Kitson of PwC and Andy McAleese of Pacific Life Re.

Dominic Wheatley, Guernsey Finance chief executive, said: “Longevity risk has always been a key factor for pension schemes to consider, but with life expectancies increasing globally this issue has only been exacerbated and pension schemes have had to innovate new solutions.

“Captive insurance solutions utilising the cell company concept are now accepted as an efficient solution to deal with this issue. Our London event will explore and explain how these structures work.

“The fact that we will have John Coles, head of operations for the BT Pension Scheme, as keynote speaker is particularly exciting as he will be able to give the audience a fascinating insight into BT’s record-breaking deal with the Prudential Insurance Company of America. The value of having that knowledge on hand at this event cannot be underestimated.”