The international financial centre has strengthened its position as the largest captive insurance domicile in Europe, Peter Niven, chief executive of Guernsey Finance, said in a report. Guernsey Finance is the promotional agency for the island’s financial sector. Captive insurance companies are insurance companies set up to finance risks emanating from their parent group or groups. Besides Guernsey, notable jurisdictions for this business include Bermuda, Cayman Islands, Vermont (US), Luxembourg, Ireland and the British Virgin Islands.  

Meanwhile, in a move that may ward off the threat of a potential trade barrier to the Guernsey insurance sector, the island’s confidentiality regime for insurance supervision has been recognised by the European Insurance and Occupational Pensions Authority as equivalent to that of the European Union. 

“Guernsey is particularly attractive as a captive insurance domicile at the moment not just due to the experience, expertise and professionalism of our service providers but also because, at least in part, of our clarity in announcing that currently Guernsey is not seeking equivalence with the EU’s proposed regulatory regime for insurance and reinsurance business, Solvency II. Indeed, we are continuing to adopt leading international standards but which also allow flexibility to best meet the needs of our distinctive client base.”