Posted on 14 Apr 2011
The number of captives domiciled in Guernsey is expected to increase significantly as the implications of compliance with Solvency II become better understood by captive managers and owners, delegates at Aon’s Captive and Insurance Master Class today. The event, held at the Chartered Insurance Institute in London, was hosted by Aon Insurance Managers (Guernsey).
In a keynote address the Chief Minister of Guernsey, Deputy Lyndon Trott, will:
• outline Guernsey's commitment to sustaining its position as European leader in captive insurance and one of the top four captive jurisdictions globally;
• set out how Guernsey's industry expertise and world-renowned reputation for robust but responsive regulation will help deliver that commitment;
• emphasise that Guernsey will lead in implementing IAIS international regulatory standards;
• show how Guernsey’s economy has adapted strongly to the changing demands of the global economy.
In advance of his speech, the Chief Minister said: "Guernsey has a well-deserved and hard-earned reputation for leadership and innovation in captive insurance. I will be emphasising that in Guernsey we will not be resting on our laurels, and that we will continue to lead and innovate in the months and years ahead."
Delegates heard that while the capital requirements of Solvency II may be appropriate for commercial insurers, who are dealing with the general public, many captive managers and owners believe the International Association of Insurance Supervisors’ (IAIS) international regulatory standards will be sufficient for most traditional captives.
Paul Sykes, Managing Director of Aon Insurance Managers (Guernsey), commented: “Guernsey is fast becoming Europe’s leading destination for captives. It offers a stable and solid political and regulatory regime while not forcing captives to adhere to the disproportionate demands and excessive capital requirements of Solvency II. Increasingly this will differentiate Guernsey from other domiciles and we fully expect businesses with captives to see Guernsey as the place to do business.’’
“Aon is committed to Guernsey, and we are actively advising new and existing captive insurance company clients to help them achieve better capital efficiency and cost savings through restructuring their captives and reducing collateral requirements.”