Insurance Business in Guernsey

The Bailiwick of Guernsey (“Guernsey”) is a major centre for the provision of insurance products and services, ranging from captive insurance company structures to intermediary services, and has an outstanding reputation for innovation and professionalism in international insurance.  The insurance industry in Guernsey has its origins dating back to the 18th century with the island’s first captive insurance company being incorporated in 1922.  Since then, Guernsey has grown to become the leading captive domicile in Europe and the fourth largest captive domicile in the world.

Guernsey’s insurance business can be broadly divided into two types:

• International insurance business- comprising both captive and commercial insurance companies writing non-local insurance risks; and 

• Domestic insurance business- comprising domestic insurance companies writing local insurance risks, and insurance intermediaries advising on or arranging contracts of insurance from within Guernsey.

Insurance business conducted in or from within Guernsey has been subject to regulation by the Commission since December 1986 when The Insurance Business (Guernsey) Law, 1986 came into effect.  This law encompassed most aspects of insurance and, for the first time, required those carrying on insurance business to register with the Commission.  This law also imposed registration requirements on those seeking to manage insurance business in Guernsey.  In April 1998, an amendment was passed to impose similar registration requirements on insurance intermediaries.

In November 2002, the regulation of insurance business in Guernsey was further enhanced through the introduction of two new laws, namely The Insurance Business (Bailiwick of Guernsey) Law, 2002, covering insurers conducting insurance business in or from within Guernsey, and The Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, covering insurance managers and insurance intermediaries conducting business in or from within Guernsey.  These laws superseded the earlier legislation.

Since 2002, a number of amendments and revisions have been made to these insurance laws and numerous supporting regulations, rules, codes and guidance have been introduced to keep pace with the ever-changing international insurance environment in which Guernsey operates.