Guernsey Finance

The Island’s international insurance sector comprises pure captives and commercial insurers using flexible vehicles such as protected cell companies and incorporated cell companies to write an extensive range of different business and where major growth areas are:

ATE insurance
Credit insurance
Professional indemnity
Reinsurance
Transformer cell

Guernsey plays host to subsidiaries of major companies such as AIG, Aon, Barbican, Catlin, Generali, Hiscox, Jardine Lloyd Thompson, Marsh, Old Mutual, Royal & SunAlliance, SCOR and Willis. Independent, boutique operators such as Heritage Insurance Management and Alternative Risk Management (ARM) are also present, providing a holistic environment for insurance solutions.

The insurance industry in Guernsey has its origins dating back to the 18th century and captives have been incorporated in the Island since 1922. Guenrsey has grown to become the leading the captive insurance domicile in Europe and number four in the world.

Indeed, approximately 40% of the UK FTSE 100 and 95 of the Global 1500 companies have captives in the Island. In addition to UK companies a number of firms in Europe, USA, Middle East, Asia, South Africa, Australia and the Caribbean have established captives in Guernsey.

Guernsey, with its robust yet pragmatic regulatory environment, has built a wealth of experience and expertise in providing management and administration of captives.

This reputation for quality of service is complemented by the Island’s continued drive for innovation. The Island was the first jurisdiction to introduce the PCC. It is a tribute to Guernsey's success that the concept, in various guises, has been replicated by other jurisdictions. However, the Island is still recognised as the pioneer and has now introduced the ICC. 

The Island has also made legislative advancements that have created a regulatory environment which allows for their flexible use. This combination of experience and creativity with cell companies means Guernsey is leading the way in providing cutting edge solutions to meet clients' complex risk transfer needs.

Guernsey's offering - led by its expertise and innovation - also makes it an attractive location for reinsurance. This is a business area that is likely to grow further following the adoption of a framework that allows Lloyd's syndicates to establish a physical presence in the Island and operate under Guernsey's Insurance Manager regulatory framework.

As well as the major growth areas the Island’s insurance sector writes significant amounts of business in: employers/public liability, material damage/business interruption, motor, property damage and business interruption, transport and life insurance.

The latter is a niche area that has seen significant development in recent years. The sector comprises firms that service the life and health insurance needs of high net worth individuals; companies that provide insurance-based employee benefits like life and health to international corporates – three of the largest multinational employee benefit networks are represented in Guernsey; and increasingly includes the use of insurance policies for investment purposes as part of broader wealth management strategies.

By the end of 2009 Guernsey played host to 678 international insurance entities, comprising 355 international insurers and 323 PCC cells (including life cells). In 2008 the industry had business with gross assets of £21bn, a net worth of £7.1bn and wrote premiums to the value of £3.3bn.

The local representative body is the Guernsey International Insurance Association (GIIA).